Leading global sales
for 7 consecutive
Create China’s new kitchen years
ROBAM 2021 Full Annual Report
Hangzhou ROBAM Appliances Co., Ltd.
2021 Full Annual Report
Leading global sales for
7 consecutive years
Create China’s new kitchen
April 2022
Leading global sales
for 7 consecutive
Create China’s new kitchen years
ROBAM 2021 Full Annual Report
Section 1 Important Notes, Contents and Definitions
The board of directors, the board of supervisors and directors, supervisors and senior management of the
Company hereby guarantee that no false or misleading statement or major omission was made to the
materials in this report and that they will assume all the responsibility, individually and jointly, for the
authenticity, accuracy and completeness of the contents of the annual report.
Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work, and Zhang Guofu, the
head of accounting body (accountant in charge), guarantee the authenticity, accuracy and completeness of
the financial report in this annual report.
All directors of the Company personally attended the board meeting for reviewing this report.
The Company has risks such as policy fluctuations in the real estate market, price fluctuations of raw
materials and intensifying market competition. Please pay attention to the investment risks.
The preplanned profit distribution deliberated and approved by the board of directors is as follows: taking
944,094,916 shares as the radix (the existing total capital stock of 949,024,050 shares, excluding 4,929,134
shares repurchased), the Company will send cash dividends of 5 yuan (tax included) and 0 bonus share (tax
included) to all shareholders for every 10 shares, and instead of converting capital reserve into share
capital.
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ROBAM 2021 Full Annual Report
Table of Contents
Section 1 Important Notes, Contents and Definitions................................................................................ 1
Section 2 Company Profile and Major Financial Indicators ...................................................................... 5
Section 3 Management Discussion and Analysis ..................................................................................... 10
Section 4 Corporate Governance ........................................................................................................... 29
Section 5 Environmental and social responsibility .................................................................................. 50
Section 6 Important Matters ................................................................................................................. 51
Section 7 Changes in Shares and Shareholders....................................................................................... 58
Section 8 Preferred Shares .................................................................................................................... 66
Section 9 Corporate Bonds.................................................................................................................... 67
Section 10 Financial Report .................................................................................................................. 68
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ROBAM 2021 Full Annual Report
Directory of documents available for inspection
I. Financial statements containing signatures of the legal representative, the head of accounting work, and the head of accounting
body with seals.
II. Original audit report stamped by ShineWing Certified Public Accountants (Special general partnership) and signed and stamped
with the certified public accountants.
III. Original copies of the documents and announcement of the company published on the newspaper designated by the CSRC in
the reporting period.
IV. 2021 annual report of the Company signed by the legal representative.
V. Other relevant information.
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ROBAM 2021 Full Annual Report
Definitions
Terms Refers to Definition
The Company, company,
Refers to Hangzhou ROBAM Appliances Co., Ltd.
ROBAM Appliances
Mingqi Refers to Hangzhou Mingqi Electric Co., Ltd.
Kinde Intelligent Refers to Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd.
ROBAM Group Refers to Hangzhou ROBAM Industrial Group Co., Ltd., controlling shareholder of the Company
Reporting period Refers to Year 2021
AVC Refers to Beijing All View Cloud Data Technology Co., Ltd.
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Section 2 Company Profile and Major Financial Indicators
I. Company Information
Stock abbreviation ROBAM Stock code 002508
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 杭州老板电器股份有限公司
Company short name in Chinese ROBAM
Company name in English (if any) HANGZHOU ROBAM APPLIANCES CO.,LTD.
Company short name in English (if any) ROBAM
Legal representative of the Company Ren Jianhua
Registered address No. 592 Linping Av., Yuhang Economic Development Zone, Hangzhou, China
Postal code of the registered address 311100
Historical changes of the Company's registered
N/A
address
Office address No. 592 Linping Av., Yuhang Economic Development Zone, Hangzhou, China
Postal code of the office address 311100
Company website http://www.robam.com/
Email robam@robam.com
II. Contact Person and Contact Information
Secretary to the board of directors Securities affairs representative
Name Wang Gang Jiang Yu
No. 592 Linping Av., Yuhang Economic No. 592 Linping Av., Yuhang Economic
Contact address:
Development Zone, Hangzhou, China Development Zone, Hangzhou, China
Tel 0571-86187810 0571-86187810
Fax 0571-86187769 0571-86187769
Email wg@robam.com jy@robam.com
III. Information Disclosure and Keeping Place
The website(s) of the stock exchange where the Securities Times, China Securities Journal, Securities Daily, Shanghai
Company discloses the annual report Securities News
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The name and website of the media where the
http://www.cninfo.com.cn
Company discloses the annual report
Place of preparation of the Company’s annual report Board office
IV. Registration Changes
Organization code 725252053
Changes in main business since the
No changes
Company's listing (if any)
Changes of controlling shareholders (if
No changes
any)
V. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm Shinewing Certified Public Accountants (special general partnership)
Office address of the accounting 9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street, Dongcheng District,
firm Beijing
Name of signatory accountant Lei Yongxin, Wang Qing
The sponsor institution engaged by the Company to perform the continuous super vision responsibility during the reporting period
□ Applicable √ Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable √ Not applicable
VI. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes √ No
Increase /
decrease this
year
2021 2020 2019
compared to
the previous
year
Operating income (yuan) 10,147,706,035.35 8,128,620,799.31 24.84% 7,760,581,855.53
Net profits attributable to
shareholders of listed companies 1,331,712,059.03 1,660,749,958.89 -19.81% 1,589,814,847.80
(yuan)
Net profits attributable to 1,276,853,316.64 1,584,584,566.83 -19.42% 1,516,979,830.78
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shareholders of the listed company
after deduction of non-recurring
profits and losses (yuan)
Net cash flow from operating
1,365,377,219.33 1,537,299,958.71 -11.18% 1,555,220,926.90
activities (yuan)
Basic EPS (yuan/share) 1.41 1.75 -19.43% 1.68
Diluted EPS (yuan/share) 1.41 1.75 -19.43% 1.68
Weighted average return on net assets 15.78% 22.39% -6.61% 25.10%
Increase /
decrease at
the end of
End of 2021 End of 2020 this year End of 2019
compared to
the end of the
previous year
Total assets (yuan) 13,906,035,181.12 12,457,568,276.25 11.63% 10,651,922,572.87
Net assets attributable to
shareholders of listed companies 8,627,026,739.27 8,050,626,815.35 7.16% 6,864,388,881.46
(yuan)
The lower net profit of the Company before and after deducting non-recurring profit and loss in the last three fiscal years is negative,
and the audit report of the latest year shows that the Company's ability to continue as a going concern is uncertain
□ Yes √ No
The lower net profit before and after deducting non-recurring profit and loss is negative
□ Yes √ No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements disclosed according to the International Accounting Standards
(IAS) and Chinese Accounting Standards during the reporting period.
2. Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards
and Chinese Accounting Standards during the reporting period.
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ROBAM 2021 Full Annual Report
VIII. Key Quarterly Financial Indicators
Unit: yuan
Q1 Q2 Q3 Q4
Operating income 1,908,332,042.49 2,417,749,989.13 2,744,769,787.56 3,076,854,216.17
Net profits attributable to
358,828,585.88 431,560,173.91 552,072,334.14 -10,749,034.90
shareholders of listed companies
Net profits attributable to
shareholders of the listed
321,817,120.06 424,568,251.15 544,600,920.87 -14,132,975.44
company after deduction of
non-recurring profits and losses
Net cash flow from operating
145,798,650.84 384,427,665.66 471,702,438.11 365,651,230.72
activities
Whether there is significant difference between the above financial indicators or the total sum of them and the financial indicators
related to the quarterly report and semiannual report disclosed by the Company
□ Yes √ No
IX. Non-recurring Profit and Loss Items and Amount
√ Applicable □ Not applicable
Unit: yuan
Amount in Amount in Amount in
Item Description
2021 2020 2019
Profits and losses on the disposal of non-current assets (including
-2,290,187.24 -422,706.54 -158,607.19
the write-off part of the provision for asset impairment)
Government subsidies included into the current profits and losses
(except those government subsidies, which are closely related to
the normal business of the Company, comply with national 65,893,969.94 91,184,657.20 88,113,806.09
policies and regulations and continuously enjoyed in accordance
with a certain standard quota or quantity)
Reversal of impairment provision for receivables subject to
1,034,992.00
separate impairment test
Income and expenditure other than those mentioned above -2,306,626.52 -2,965,479.76 -1,884,306.56
Less: Amount affected by income tax 6,738,387.65 11,202,215.16 13,290,725.11
Amount of minority shareholders' equity affected (after tax) 735,018.14 428,863.68 -54,849.79
Total 54,858,742.39 76,165,392.06 72,835,017.02 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Not applicable
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The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.
Description of defining the non-recurring profit and loss items enumerated in the “Interpretative Announcement No. 1 on Information
Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit and loss items
□ Applicable √ Not applicable
The Company does not have any non-recurrent profit and loss items enumerated in the “Interpretative Announcement No. 1 on
Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit and loss items.
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Section 3 Management Discussion and Analysis
I. Industry Situation that the Company was in During the Reporting Period
According to the “National Economic and Social Development Statistics Bulletin 2021” issued by the National Bureau of statist ics,
at the end of 2021, the urbanization rate of the country's permanent population was 64.72%, 0.83 percentage points higher than that at
the end of the previous year. China is at the mid-term level of urbanization development. Compared with the average level of 80%
urbanization rate in developed countries, China's urbanization rate will still have a large room for growth in the long term. Thanks to
the continuous improvement of urbanization rate and urbanization development quality stage, the development of kitchen applia nce
industry has been sound for a long time, and the expansion and upgrading trend of kitchen category in China is significant. Compared
with the gradual slowdown of incremental market of kitchen appliances brought by the real estate industry in the past two dec ades,
the stock market dominated by renewal demand is gradually opening up, and the new market and stock market will jointly support
the future development space of kitchen appliance industry.
Due to the timing differences between Chinese traditional kitchen appliances and emerging kitchen appliances, the current
development shows different characteristics.
Traditional kitchen appliances: 1) in terms of product scale, the retail sales declined slightly, and the retail sales still increased.
According to the total data pushed by All View Cloud (AVC), in 2021, the overall scale of range hoods was 21.5 million units and
RMB 33.3 billion, with a year-on-year decline of 6% in retail volume and a year-on-year increase of 4% in retail sales. In 2021, the
overall scale of gas hobs was 25.43 million units and RMB 19.1 billion, with a year-on-year decline of 9% in retail volume and a
year-on-year increase of 2% in retail sales. 2) In terms of average price, the upgrading of product structure drives the average pric e
growth. In 2021, the average online price of range hood was RMB 1,550, a year-on-year increase of RMB 156, and the average
offline price was RMB 3,733, a year-on-year increase of RMB 313. 3) In terms of consumption scenarios, the trend of product set
sales is obvious. The high-end and intelligent development of home applia nce manufacturers is trending. 4) In terms of competition
pattern, the market share of online and offline leading enterprises has increased. In 2021, the market share of online market ROBAM
/ FOTILE's sales was + 1.5pct / + 1.51pct respectively year-on-year; The market share of offline market ROBAM / FOTILE's sales
was + 2.71pct / + 2.26pct respectively year-on-year.
Emerging kitchen appliances: dishwashers and built-in steam oven products drive the growth of kitchen appliance market. According
to the total data pushed by All View Cloud (AVC), 1) in terms of product scale, the total retail sales increased. In 2021, the retail sale s
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of dishwasher market was RMB 9.96 billion, with a year-on-year increase of 14.4%, and the retail volume was 1.952 million units,
with a year-on-year increase of 1.7%. In 2021, the overall scale of built-in steam oven-oven was 950 thousand units and RMB 5.6
billion, with a year-on-year increase of 22% in retail volume and a year-on-year increase of 26% in retail sales. Compared with 2019,
the retail volume increased by 98% and the retail sales increased by 104% year-on-year. 2) In terms of product types, product
functions tend to be integrated and high-end. The innovation of new and old kitchen appliances continues, and the product iteration
speeds up. 3) In terms of channel structure, the market share of new categories in hardbound housing and front decoration continues
to increase. The growth momentum of emerging kitchen appliances is strong, and Chinese kitchens have entered a new era of
category expansion.
II. Main Business of the Company during Reporting Period
Dedicated to creating a new quality kitchen for millions of families, the Company takes foot in the kitchen fie ld and focuses on the
development, production, sales and comprehensive services of kitchen appliances, including range hoods, gas hobs, steam oven-oven,
dishwashers and integrated hobs, and it is committed to creating a more “convenient, healthy and intere sting” kitchen life for
thousands of families. After more than 40 years of development and growth, the Company has become the manufacturer with the
longest history, the highest market share and the largest production capacity in the Chinese kitchen appliance industry. The Company
has achieved the best sales of range hoods in China for 24 years and the world for seven consecutive years.
According to the product attributes and cooking methods, the Company's products are mainly divided into three categories an d
integrated categories. The first category refers to the product group represented by range hoods. The second category refers to the
electrified cooking product group represented by steam oven-oven, steamer and oven. The third category refers to the water kitchen
appliance product group represented by dishwashers, gas water heater and water purifier. In addition, there are integrated product
groups represented by integrated hobs and integrated range hoods.
The channel layout of the Company is complete, for ming three major channels focusing on offline retail, online e-commerce and
refined decoration engineering, as well as overseas channels.
1) Offline retail channels: mainly based on the national agent model of ROBAM, the main channels are divided into exclusive stores
(agent exclusive stores, Red Star Macalline, Easyhome, etc.), KA (GOME, Suning, 5 Star and local chain channels), innovation
channels (whole house customization companies, home decoration companies and gas companies), sinking channels (JD
exclusive store, Tmall Youpin, Suning Retail Cloud, GOME New Retail, 5 Star Wanzhentong, etc.) and local department stores,
etc.
2) Online e-commerce channels: mainly directly operated by the Company's e-commerce department. The main channels include
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online platforms such as JD, Tmall and Suning, as well as other media platforms (new media social networking, official website,
private domain, TV shopping, etc.)
3) Refined decoration engineering channels: strategic engineering customers (leading real estate enterprises) a nd regional
engineering customers.
4) Overseas channels: North America, Australia, Malaysia, Cambodia and other Southeast Asian regions.
III. Analysis of Core Competitiveness
No significant change in the Company's core competitiveness during the reporting period: The Company's core competitiveness is
mainly reflected in the high-end positioned the brand capacity, continuous innovative research and development capacity,
comprehensive and efficient operation capacity.
1. Brand capability of high-end positioning
ROBAM, founded in 1988, has established a significant brand advantage in the kitchen appliance industry. Since 1991, ROBAM
range hood has won the only "Quality Silver Award of the People's Republic of China", "China Famous-brand Product", "National
Inspection-free Product" in the kitchen appliance industry; ROBAM has been recognized as "China Famous Brand"; ROBAM has
won "Most Influential Brand in China's Kitchen Appliance Industry" and "China's 500 Most Valuable Brands". In addition, ROBAM
has been shortlisted as "Brandz Top 100 Most Valuable Chinese Brands" for 7 consecutive years and awarded "Top 500 Asia Brand"
for 15 consecutive years. After more than 40 years of efforts, it continues to deepen the positioning of "big suction" and cr eate
high-end brand experience. "Big suction" has become the synonym of "high-end range hood", and the ROBAM has become one of
the most famous and favorite professional high-end kitchen appliance brands in China. In 2015, ROBAM represented China's
high-end manufacturing and landed at Milan Expo, and in 2016, it landed at IFA exhibition in Germany, which improved the
ROBAM's high-end image and international influence. In 2018, ROBAM Appliances put forward a new brand concept, that is, to
"Creating China’s new kitchen." According to the survey data released by Euromonitor International, the world's authoritative market
research organization, ROBAM Appliances’ range hood won the first market share of global range hood private brand market for
seven consecutive years from 2015 to 2021.
2. R & D capability of continuous innovation
The mission of the Company is to render happiness of kitchen life for more families, by improving the existing cooking environment
based on continuous research on technology to bring healthy and relaxed cooking life to users with cooking fun. For this reason, the
Company adheres to the principle of "product leading" and constantly pursues "technology leading". The Company now has a
national technology center, a national laboratory, a national industrial design center, California institute of innovation, Shenzhen
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innovation research institute and academician workstation of Tsinghua University. It introduces high-level technical talents,
implements fine management, and improves the construction of technical talent echelon. It also pays attention to the quality and
efficiency of R & D, continuously optimizes the product development cycle, improves the success rate of product launch, and
reserves intelligent and integrated core technologies. On the hardware side, the Company adheres to the craftsman spirit of excellence,
promotes the all-round and multi-dimensional improvement of the first, second and third product category groups; On the software
side, it explores the development of AI-IoT intelligent IOT platform, focuses on the application of AI intelligent cooking curve, and
improves the soft power of kitchen appliance products.
3. Comprehensive and efficient operation capability
The Company has the leading marketing capability in the industry: the Company adopts the only agency marketing mode in the
industry, and creates the most comprehensive, efficient and responsive marketing system in the industry through strong management
and control, equity incentive and the de facto business partner system. It deepens intelligent manufacturing, lean operation and
technology driven, and comprehensive ly builds the industry's first supply chain system. Looking at global manufacturing, the
nine-day central digital platform with data-driven business has been officially put into use, striving to become a first-class
manufacturing benchmark in China. In addition, the Company accelerates the integration of digitization and informatization, focuses
on the interactive innovation and continuous optimization of data, technology, business process and organizational structure,
constantly creates new capabilities in the informatization environment, and improves the sustainable competitiveness in the domestic
and foreign markets.
IV. Main Business Analysis
1. Overview
In 2021, in the face of adverse factors such as the tightening of national macro policies on real estate and the rising costs of raw
materials and labor, the overall competition in the kitchen appliance industry is more intense and the industry concentration continues
to increase. In terms of retail channel, according to the monthly data report of offline retail market monitoring of All View
(hereinafter referred to as "All View offline report"), the retail sales of main categories of kitchen appliances, such as ra nge hoods
and gas hobs, decreased by 0.05% and 1.9% respectively compared with the same period of last year. In terms of e-commerce
channel, according to the monthly data report of online retail market monitoring of All View (hereinafter referred to as "All View
online report"), the retail sales of kitchen appliance packages increased by 5.4% compared with the same period of last year. In terms
of engineering channel, according to the report "2021 China Real Estate Fine Decoration Market Summary of All View", there we re
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3,378 new projects of kitchen appliances in the fine decoration market, decreased by 7.5% year-on-year, and the scale of kitchen
appliances was 2,788,500, decreased by 12.2% year-on-year.
As the leading company in the industry, the Company closely focuses on the annual business philosophy of "journey with dream,
torrent with bravery", firmly grasps the dividend of increasing industry concentration, and makes joint efforts in new and old kitchen
appliance products. With all channels being significantly better than the industry level, it realizes the operating income of RMB
10.148 billion, with a year-on-year increase of 24.84%, and the income breaks through RMB 10 billion for the first time, which is an
important milestone in the development history of the Company.
As of December 31, 2021, according to the All View offline report, the market share and market position of the offline retail sales of
Company's major product categories are shown in the following table:
Range hood Gas hobs Sterilizer cabinet Built-in steam Built-in electrical Built-in electric Built-in
oven-oven steam oven oven dishwasher
30.5% 29.3% 22.4% 34.8% 22.8% 39.6% 17.5%
1 1 2 1 2 2 2
As of December 31, 2021, according to the All View online report, the market share and market position of the online retail
sales of Company's major product categories are shown in the following table:
Kitchen appliance Range hood and Range hood Gas hobs Built-in steam Built-in electrical Built-in
packages gas hobs oven-oven steam oven dishwasher
30.4% 24.2% 16.9% 9.9% 14.5% 25.8% 8.2%
1 1 1 3 3 1 4
As of December 31, 2021, according to the All View refined decoration report, the market share of “ROBAM” range hood in refined
decoration channel is 36.2%, ranking first in the industry.
In 2021, in the technology sector, it takes products as the core, talents as the cornerstone and innovation as the driving force to
promote product upgrading and lead the development of the industry. It pays attention to the training of R & D talents, improve the
construction of R & D system, increase cooperation with colleges and universities, and deepen the integration of the industry,
universities and research institutes. Adhering to the spirit of craftsmanship and management innovation, it accelerates the iteration
and upgrading of software and hardware of various categories, and improves the user experience. The range hood 8235S won the
AWE2021 "AWE Gold Award" and the German IF Design Award 2021, the range hood CG68A0 won the German Red Dot Award
2021: Product Design, and ROBAM Creator series won the "2021 Red-top Award for China's High-end Household Appliances and
Consumer Electronics". This year, 1093 patents were applied for, including 274 invention patents; By the end of 2021, a total of 2010
patents had been granted, including 65 invention patents. In addition, in 2021, the Company took the lead in formulating 9 standards,
including 1 industry standard, 6 group standards and 2 Zhejiang manufacturing standards; Participated in the formulation of 2 1
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standards, including 9 national standards, 3 industrial standards and 9 group standards. The Company’s technological innovation
ability has been continuously recognized by the industry and won the second prize of Zhejiang Science and Technology Progress
Award and the second prize of China Quality Association Quality Technology Award.
In 2021, the marketing sector deepened the high-end positioning of the brand, made joint efforts in new and old categories,
coordinated development of multiple channels, and mutual empowerment of categories and channels to provide consumers with
high-quality comprehensive solutions for kitchen appliances. In terms of retail channels, it leads the development trend of series and
high-end of the industry, creates a consumption scene of "China's new kitchen" with "ROBAM four-piece set" as the starting point;
promotes marketing flat construction, implements marketing digital reform, and optimizes channel efficiency. In terms of innovative
channels, it in-depth cooperates with whole house customization companies and leading enterprises of home decoration companies,
seizes the front-end flow entrance, actively explores the stock market resources, and quickly improves the matching rate of second
and third categories. In terms of e-commerce channels, it has the new and old media platforms under mutual drainage, content
marketing digging new and old user value; accelerates the iteration and upgrading of various categories, shares product advantages
within the channels, and improves channel efficiency. In terms of project channels, it adjusts the customer structure, upgrades the
product structure, improves the penetration of new products, promotes the series solution of refined decoration residential kitchen
appliance products, and further popularizes the central range hoods. In terms of overseas channels, it continuously optimizes the
global layout and steadily promotes the process of brand internationalization.
In 2021, the production sector is committed to opening up a new path for the transformation and upgrading of China's high-end
kitchen appliance manufacturing, focusing on the three core strategies of "accurate delivery, high-quality manufacturing and
data-driven", and building one of the manufacturing benchmarks with the strongest comprehensive competitiveness of China's
manufacturing industry with the four business priorities of "strengthening supply, promoting transformation, developing new
products and refining business". Through refined cost control, process innovation, new technology application and scientific and
efficient quality management, the Company can ensure the delivery capacity of new and old kitchen appliances, continuously reduce
the cost of procurement and improve the production efficiency and scale effect. It strengthens the headquarters demand foreca sting
function, uses inventory model and scientific replenishment, successfully realizing the direct distribution reform in more than 10
regions across the country. The satisfaction degree of customer orders reaches more than 97%. ROBAM Future Factory is the fir st
intelligent unmanned factory in China's kitchen appliance industry. The project is one of the first batch of "future factories" in
Zhejiang Province. In addition, Maoshan Intelligent Manufacturing Science and Innovation Park project has been put into use, which
will promote product iteration, upgrade manufacturing intelligence capability and consolidate the foundation of the Company's
long-term development.
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In 2021, the brand sector is committed to building the first brand of high-end kitchen appliances in China that knows Chinese
cooking best, and continues to promote the implementation of the "China's new kitchen" plan. AWE successfully held a brand
exhibition with the theme of technology inspiring culinary creativity in 2021, and launched ROBAM Creator series products at the
immersive press conference "Hello Creator" to strengthen the brand height. CCTV, academicians, talents are invited into ROBAM,
making the whole network witness the Company's product update and iteration. The Company held the China Dishwa sher Festival
and jointly issued the “White Paper on Dishwashers Suitable for Chinese Kitchens” with the China Household Electric Appliances
Research Institute to enhance the brand potential. Xu Kai was hired as the spokesperson for ROBAM new kitchen. Various channels
carried out activities such as China-fashion banquet, peach blossom banquet and “Yearning for Kitchen” Festival. The Company was
the exclusive title sponsor of "Heard it's delicious" and served as the food creation officer of "The Pursuit of H appiness" to interpret
the brand value. In addition, as the exclusive supplier of official household kitchen appliances for the 2022 Hangzhou Asian Games,
it will help to spread Chinese cooking culture and boost the construction of Asian Games cities.
In 2021, Mingqi focused on the upgrading of integrated categories, explored the development direction of integrated kitchen, and
worked together with online and offline channels to create a new retail model and move towards a new development. Kinde enric hed
the product matrix of integrated stoves and guarded the brand posit ion. After the completion of the intelligent integrated kitchen
ecological industrialization project, the R & D and manufacturing capacity of integrated kitchen appliance products will be f urther
improved.
In 2021, the Company continued to be recognized by the capital market in terms of corporate governance, internal management and
shareholder return. In the information disclosure assessment of Listed Companies in Shenzhen Stock Exchange in 20 20, the
Company was rated as a (excellent) level, and it has won this honor for eight consecutive years; In the field of investor relations, the
Company won the best board of directors award of the 12th Tianma Award for Investor Relations of Listed Companies on the Main
Board of China, the 12th Best Investor Relations Award of China’s Listed Companies, the Top 100 Value Listed Companies on the
Main Board and other awards of the Securities Times; The secretary of the board of directors of the Company won the 12th Best
Director Secretary of Investor Relations of Listed Companies on the Main Board of China and other awards. The Company has
always adhered to standard operation, deeply explored the kitchen field and helped value investment.
In 2021, as part of the Company's common prosperity plan, and in order to further establish and improve the Company's long-term
effective incentive mechanism and fully mobilize the enthusiasm of the Company's middle and senior core forces, the Company
successively launched the “Business Partner Shareholding Plan” and the “2021 Stock Option Incentive Plan” to provide
differentiated incentives for the Company's senior management team, middle-level core business and technical backbone, so as to
consolidate the Company's long-term development foundation, promote the high-quality development of the Company.
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2. Revenue and Costs
(1) Operating income composition
Unit: yuan
2021 2020
Year-on-year
Proportion in Proportion in
Amount Amount increase / decrease
operating income operating income
Total operating
10,147,706,035.35 100% 8,128,620,799.31 100% 24.84%
income
By industry
Home and kitchen
9,878,609,034.58 97.35% 7,950,757,663.78 97.81% 24.25%
& bath appliances
Other 269,097,000.77 2.65% 177,863,135.53 2.19% 51.29%
By product
First category
group
Range hood 4,879,636,891.65 48.09% 4,109,720,518.81 50.56% 18.73%
Gas hobs 2,439,639,215.87 24.04% 1,917,138,716.95 23.59% 27.25%
Sterilizer cabinet 544,149,587.07 5.36% 558,934,801.48 6.88% -2.65%
Second category
group
Steam oven-oven 647,136,752.08 6.38% 377,875,190.46 4.65% 71.26%
Steamer 150,479,922.38 1.48% 188,586,242.66 2.32% -20.21%
Steamer 132,013,212.98 1.30% 118,200,187.42 1.45% 11.69%
Third category
group
Dish-washing
450,505,656.90 4.44% 223,781,076.46 2.75% 101.32%
machine
Water purifier 59,858,528.51 0.59% 61,458,853.99 0.76% -2.60%
Water heaters 155,054,325.57 1.53% 56,885,678.02 0.70% 172.57%
Integrated hob 326,347,237.29 3.22% 259,062,761.51 3.19% 25.97%
Other small home
93,787,704.28 0.92% 79,113,636.02 0.97% 18.55%
appliances
Other business
269,097,000.77 2.65% 177,863,135.53 2.19% 51.29%
income
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By region
East China - main
4,699,565,607.49 46.33% 3,660,037,066.87 45.03% 28.40%
products
East China - other 269,097,000.77 2.65% 177,863,135.53 2.19% 51.29%
South China 1,313,350,785.57 12.94% 1,166,738,209.66 14.35% 12.57%
Central China 890,428,360.89 8.77% 798,608,093.61 9.82% 11.50%
North China 1,242,294,816.78 12.24% 859,966,194.92 10.58% 44.46%
Northeast China 512,607,935.65 5.05% 417,632,137.86 5.14% 22.74%
Northwest China 509,788,589.04 5.02% 366,186,500.24 4.50% 39.22%
Southeast China 647,294,350.69 6.38% 644,756,608.57 7.93% 0.39%
Overseas regions 63,278,588.47 0.62% 36,832,852.05 0.45% 71.80%
Distribution model
Sales by proxy 3,070,367,965.64 30.25% 2,575,251,701.43 31.69% 19.23%
Sales by dealers 380,213,068.56 3.75% 346,131,673.27 4.26% 9.85%
Direct sales 4,647,292,563.60 45.80% 3,340,258,926.10 41.09% 39.13%
Engineering 1,976,492,346.14 19.48% 1,847,977,080.91 22.73% 6.95%
Other 73,340,091.41 0.72% 19,001,417.60 0.23% 285.97%
(2) Industries, products, regions and sales models that account for more than 10% of the Company's
operating income or profit
√ Applicable □ Not applicable
Unit: yuan
Year-on-year Year-on-year Year-on-year
increase / increase / increase /
Gross margin
Operating income Operating cost decrease of decrease of decrease of
ratio
operating operating gross margin
income cost ratio
By industry
Home and
kitchen &
10,147,706,035.35 4,835,053,404.37 52.35% 24.84% 35.69% -3.81%
bath
appliances
By product
Range hood 4,879,636,891.65 2,261,658,764.86 53.65% 18.73% 36.19% -5.94%
Gas hobs 2,439,639,215.87 1,048,989,508.38 57.00% 27.25% 33.91% -2.14%
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By region
East China 4,699,565,607.49 2,153,822,471.06 54.17% 28.40% 39.05% -3.51%
South China 1,313,350,785.57 683,419,773.36 47.96% 12.57% 25.01% -5.18%
North China 1,242,294,816.78 577,901,469.75 53.48% 44.46% 64.94% -5.78%
Distribution model
Sales by 3,070,367,965.64 1,596,428,723.00 48.01% 19.23% 36.71% -6.65%
proxy
Direct sales 4,647,292,563.60 1,515,713,730.29 67.39% 39.13% 20.23% 5.13%
Engineering 1,976,492,346.14 1,050,923,152.77 46.83% 6.95% 14.01% -3.29%
In the case that the statistical standards for main business data of the Company are adjusted during the reporting period, the main
business data of the Company in recent 1 year are subject to those after the adjustment of the statistical standards at the end of the
reporting period
□ Applicable √ Not applicable
(3) Whether the Company's physical sales revenue is greater than the service revenue
√ Yes □ No
Year-on-year
Industry category Item Unit 2021 2020
increase / decrease
Sales quantity Unit 8,026,289 6,952,763 15.44%
Home and kitchen
Production output Unit 8,079,472 7,056,783 14.49%
& bath appliances
Inventory Unit 2,275,238 2,222,055 2.39%
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable √ Not applicable
(4) Performance of major sales contracts and major purchase contracts signed by the Company up to the
reporting period
□ Applicable √ Not applicable
(5) Composition of operating cost
Industry and product categories
Unit: yuan
2021 2020
Industry Proportion in Proportion in Year-on-year
Item
category Amount operating Amount operating increase / decrease
cost cost
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Home and Manufacturing
375,524,089.21 7.77% 231,680,866.15 6.50% 62.09%
kitchen & costs
bath Raw materials 4,240,067,637.57 87.69% 3,112,334,458.17 87.35% 36.23%
appliances Labor 219,461,677.59 4.54% 219,191,606.55 6.15% 0.12%
Unit: yuan
2021 2020 Year-on-year
Product
Item Proportion in Proportion in increase /
Classification Amount Amount
operating cost operating cost decrease
Manufacturing
213,123,127.91 4.41% 134,505,424.42 3.77% 58.45%
costs
Range hood
Raw materials 1,929,019,611.59 39.90% 1,407,036,579.61 39.49% 37.10%
Labor 119,516,025.36 2.47% 119,122,390.95 3.34% 0.33%
Manufacturing
37,797,820.14 0.78% 23,134,151.04 0.65% 63.39%
costs
Gas hobs
Raw materials 982,173,775.43 20.31% 730,332,351.14 20.50% 34.48%
Labor 29,017,912.81 0.60% 29,873,559.60 0.84% -2.86%
Manufacturing
32,815,880.40 0.68% 28,084,404.21 0.79% 16.85%
Sterilizer costs
cabinet Raw materials 336,463,954.86 6.96% 286,265,054.99 8.03% 17.54%
Labor 24,559,377.53 0.51% 25,979,428.66 0.73% -5.47%
Manufacturing
91,787,260.76 1.90% 45,956,886.49 1.29% 99.72%
costs
Other
Raw materials 992,410,295.69 20.53% 688,700,472.43 19.33% 44.10%
Labor 46,368,361.89 0.96% 44,216,227.34 1.24% 4.87%
(6) Whether the consolidation scope changes in the reporting period
□ Yes √ No
(7) Major changes or adjustments of business, products or services of the Company during the reporting
period
□ Applicable √ Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
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Total sales amount of top five customers (yuan) 3,281,950,225.24
Proportion of total sales amount of top five customers in total annual
32.34%
sales
Among the sales amount of top five customers, proportion of sales
0.00%
amount of related parties in total annual sales
Top 5 customers of the Company
No. Customer name Sales Amount (yuan) Proportion in total annual sales
1 Unit 1 1,599,097,679.27 15.76%
2 Unit 2 885,343,504.05 8.72%
3 Unit 3 312,719,970.80 3.08%
4 Unit 4 298,965,812.27 2.95%
5 Unit 5 185,823,258.85 1.83%
Total -- 3,281,950,225.24 32.34%
Other information of major customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount of top five suppliers (yuan) 1,118,557,326.48
Proportion of total purchase amount of top five suppliers in total
22.72%
annual purchase amount
Among the purchase amount of top five suppliers, proportion of
purchase amount of related parties in total annual purchase 0.00%
amount
Top 5 suppliers of the Company
Proportion in total annual purchase
No. Supplier name Purchase amount (yuan)
amount
1 Unit 1 263,084,773.79 5.34%
2 Unit 2 253,409,671.61 5.15%
3 Unit 3 234,233,755.68 4.76%
4 Unit 4 220,243,579.77 4.47%
5 Unit 5 147,585,545.63 3.00%
Total -- 1,118,557,326.48 22.72%
Other information of major suppliers
□ Applicable √ Not applicable
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3. Cost
Unit: yuan
Year-on-year
Description of major
2021 2020 increase /
changes
decrease
Selling expenses 2,454,418,039.92 2,146,965,048.87 14.32% N/A
Management costs 363,762,372.63 296,985,763.24 22.48% N/A
Financial expenses -139,673,507.87 -150,148,186.75 -6.98% N/A
Research and
366,026,666.34 303,347,555.81 20.66% N/A
development expenses
4. R & D investment
R & D personnel of the Company
2021 2020 Proportion of change
Number of R & D personnel (person) 876 742 18.06%
Proportion of R & D personnel 17.95% 16.09% 1.86%
Educational structure of R & D personnel —— —— ——
Bachelor 652 542 20.30%
Master 130 106 22.64%
Age composition of R & D personnel —— —— ——
Under 30 years old 261 216 20.83%
30~40 years old 463 380 21.84%
R & D investment of the Company
Proportion of
2021 2020
change
R & D investment amount (yuan) 366,026,666.34 303,347,555.81 20.66%
Proportion of R & D investment in operating revenue 3.61% 3.73% -0.12%
Capitalized amount of R & D investment (yuan) 0.00 0.00 0.00%
Proportion of capitalized R & D investment in R & D
0.00% 0.00% 0.00%
investment
Reasons and effects of major changes in the composition of R & D personnel of the Company
□ Applicable √ Not applicable
Reasons for significant changes in the proportion of total R & D investment amount in operating revenue compared with the previous
year
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□ Applicable √ Not applicable
Reasons for the great changes of R & D investment capita lization rate and description of its rationality
□ Applicable √ Not applicable
5. Cash flow
Unit: yuan
Year-on-year increase /
Item 2021 2020
decrease
Subtotal cash inflows from
10,571,104,254.72 8,399,284,005.14 25.86%
operating activities
Subtotal cash outflows from
9,205,727,035.39 6,861,984,046.43 34.16%
operating activities
Net cash flow from operating
1,365,377,219.33 1,537,299,958.71 -11.18%
activities
Subtotal cash inflows from
2,774,993,853.52 1,649,618,287.44 68.22%
investment activities
Subtotal cash outflows from
3,635,682,805.12 2,867,289,864.56 26.80%
investment activities
Net cash flow from investment
-860,688,951.60 -1,217,671,577.12 /
activities
Subtotal cash inflows from
31,544,588.74 12,726,177.30 147.87%
financing activities
Subtotal cash outflows from
701,527,338.97 474,512,025.00 47.84%
financing activities
Net cash flow from financing
-669,982,750.23 -461,785,847.70 /
activities
Net increase of cash and cash
-166,107,693.21 -143,199,751.94 /
equivalents
Description of main influencing factors of significant changes in relevant data on a year-on-year basis
√ Applicable □ Not applicable
1) Cash inflow from operating activities increased by 25.86% on a year-on-year basis, mainly due to the increase in the Company's
income scale during the reporting period.
2) Cash outflow from operating activities increased by 34.16% on a year-on-year basis, mainly due to the increase in the cost of
purchasing raw materials during the reporting period.
3) Cash inflows from investment activities increased by 68.22% on a year-on-year basis, mainly due to the increase in the amount of
financial products purchased during the reporting period.
4) Cash outflows from investment activities increased by 26.80% on a year-on-year basis, mainly due to the increase in construction
expenses of Maoshan base, ROBAM Building and other projects during the reporting period.
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5) Cash outflows from financing activities increased by 47.84% on a year-on-year basis, mainly due to the increase in the
Company's share repurchase expenditure during the reporting period.
Reasons for significant difference between the net cash flow from operating activities of the Company and the net profit of the
current year in the reporting period
□ Applicable √ Not applicable
V. Non-main Business Analysis
□ Applicable √ Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: yuan
End of 2021 Beginning of 2021
Proportion
Proportion in total Proportion in total
Amount Amount change
assets assets
Monetary capital 3,802,201,346.55 27.34% 3,921,052,700.31 31.48% -4.14%
Accounts receivable 1,597,692,860.90 11.49% 1,008,235,946.40 8.09% 3.40%
Inventory 1,772,231,632.25 12.74% 1,386,089,344.84 11.13% 1.61%
Investment properties 11,085,896.07 0.08% 2,591,001.84 0.02% 0.06%
Long-term equity
5,405,129.91 0.04% 3,452,769.59 0.03% 0.01%
investment
Fixed assets 1,179,306,020.01 8.48% 824,978,354.71 6.62% 1.86%
Construction in progress 454,643,364.82 3.27% 463,424,647.46 3.72% -0.45%
Right-of-use assets 29,902,954.22 0.22% 15,374,577.46 0.12% 0.10%
Short-term borrowing 29,616,655.41 0.21% 6,076,177.30 0.05% 0.16%
Contract liabilities 1,026,782,402.35 7.38% 949,591,228.35 7.62% -0.24%
Lease liabilities 26,177,034.29 0.19% 14,705,038.35 0.12% 0.07%
The proportion of overseas assets is relatively high
□ Applicable √ Not applicable
2. Assets and liabilities measured with fair value
□ Applicable √ Not applicable
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3. Limitation on the assets and rights as of the end of the reporting period
Use of restricted monetary funds
Item Year-end balance Year-beginning balance
Bill acceptance security deposit 82,212,526.20 34,956,186.75
Total 82,212,526.20 34,956,186.75
VII. Analysis of Investment
1. Overall situation
□ Applicable √ Not applicable
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Significant ongoing non-equity investments during the reporting period
□ Applicable √ Not applicable
4. Financial asset investment
(1) Securities investments
□ Applicable √ Not applicable
The company had no securities investments in the reporting period.
(2) Derivatives investment
□ Applicable √ Not applicable
The company had no derivatives investments in the reporting period.
5. Use of funds raised
□ Applicable √ Not applicable
No funds raised are used in the reporting period.
VIII. Sales of Major Assets and Equities
1. Sales of major assets
□ Applicable √ Not applicable
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The company did not sell major assets in the reporting period.
2. Sales of major equities
□ Applicable √ Not applicable
IX. Analysis of Main Holding and Joint-stock Companies
□ Applicable √ Not applicable
During the reporting period, the Company has no information of important holding and joint-stock companies that should be
disclosed.
X. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI. Prospect of the Company's Future Developme nt
1. Company development strategy (2020-2022)
Focus on cooking, focus on range hoods, expand the first category advantages, lead the second category, and steadily promote the
third category. Adhere to the spirit of hard-working vise entrepreneurship, take products and users as the core, create a competitive
advantage of the enterprise. Continue to create a more "convenient, healthy and interesting" kitchen life for users, build a global
brand and a century-old enterprise.
I. Overall goal: build a global brand and a century-old enterprise.
To be a world-class century-old leader of cooking innovation.
II. Business goal:focus on cooking, focus on range hoods, expand the first category advantages, lead the second category, and
steadily promote the third category.
The first category refers to the product group represented by range hoods. The second category refers to the electrified cook ing
product group represented by steam oven-oven. The third category refers to the water kitchen appliance product group represented by
dishwashers.
III. Core work: take products and users as the core, create a competitive advantage of the enterprise, and continue to create a more
"convenient, healthy and interesting" kitchen life for users.
The core of products focus on the leading product technology; users refer to the consumers who purchase and use kitchen products.
At present, the kitchen appliance industry has gradually entered the era of stock game. With the acceleration of industry integration,
products and user experience will become more and more important. Through technological innovation, expand the competitive
advantages of products, increase the market share driven by products, pay attention to the user's cooking process and cooking
environment, take improving the user's cooking experience as the starting point, make the products and user experience the
Company's competitive advantage, and continue to create a more "convenient, healthy and interesting" kitchen life for users.
2. Mission, vision and values of the Company
Mission: To render happiness of kitchen life for more families.
Vision: To be a world-class century-old leader of cooking innovation.
Values: Hard-working vise entrepreneurship.
3. In 2022, the Company's work policy is to "journey with dream, ride the momentum", consolidate the leading position of
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traditional categories, achieve a comprehensive breakthrough in the second and third categories, accelerate the layout of new
categories and comprehensively lead the development of the industry.
4. Risk Factors
(1) Risk of real estate market fluctuation
The Company takes root in the kitchen, providing kitchen appliances including range hood, gas hob, steam oven-oven, dishwasher,
integrated hob and other kitchen appliances categories. Its demand is closely related to kitchen decoration and has certain attributes
of "decoration" and "furniture". At present, the main market is dominated by the demand for new houses, the proportion of renewal
demand is gradually increasing, and the product demand is greatly affected by the fluctuation of the real estate market. The Company
has a strong ability to resist fluctuations by virtue of its market leadership, the fluctuation of the real estate market will still have a
certain impact on the Company's operating performance. In addition, some private real estate enterprises have debt default on
commercial bills due to liquidity problems, which may lead to the uncollectible receivables of the Company's engineering business.
(2) Risk of raw material price fluctuation
The Company's main raw materials are stainless steel, cold-rolled sheet, copper, glass, etc. whose price fluctuation will directly affect
the Company's product costs, thus affecting the Company's profitability. The price of main raw materials rose sharply in 2021 ,
bringing some pressure on the Company's operating performance.
(3) Risk of intensified market competition
In recent years, due to the tightening of the overall macro environment of the kitchen appliance industry, the continuous improvement
of industry concentration, the increasing investment of comprehensive brands in the kitchen appliance market and the participation of
Internet brands, there is a risk of intensified market competition in the kitchen appliance industry, which will have a certa in impact on
the Company's business performance.
XII. Reception, Research, Communication, Interview and Other Activities During the
Reporting Period
√ Applicable □ Not applicable
Type of
Reception time Reception place Reception way received Basic informat ion index of the survey
object
See the “Record Chart of Investor Relation Activit ies on
Co mpany
January 6, 2021 Field survey Organization January 6, 2021” in cninfo for received object and main
conference room
communicat ion content
See the “Record Chart of Investor Relation Activit ies on
Co mpany
January 12, 2021 Field survey Organization January 12-15, 2021” in cninfo for received object and
conference room
main co mmunicat ion content
See the “Record Chart of Investor Relation Activit ies on
Co mpany
March 04, 2021 Field survey Organization March 4-5, 2021” in cninfo for received object and main
conference room
communicat ion content
See the “Record Chart of Investor Relation Activit ies on
Co mpany
May 07, 2021 Field survey Organization May 7, 2021” in cnin fo for received object and ma in
conference room
communicat ion content
May 19, 2021 Multi-functional Field survey Organization See the “Record Chart of Investor Relation Activit ies on
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hall, Build ing 1 of May 19, 2021” in cninfo for received object and main
the Co mpany communicat ion content
Conference room 2, See the “Record Chart of Investor Relation Activit ies on
June 29, 2021 Building 1 of the Field survey Organization June 29, 2021” in cninfo for received object and main
Co mpany communicat ion content
See the “Record Chart of Investor Relation Activit ies on
Co mpany
August 19, 2021 Field survey Organization August 19, 2021” in cninfo for received object and main
conference room
communicat ion content
See the “Record Chart of Investor Relation Activit ies on
Co mpany
August 24, 2021 Field survey Organization August 24, 2021” in cninfo for received object and main
conference room
communicat ion content
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Section 4 Corporate Governance
I. Basic State of Corporate Governance
In the reporting period, the Company constantly improved the corporate governance structure, established and improved internal
management and control systems, and continued to carry out in-depth corporate governance activities in strict accordance with the
Company law, Securities Law, Governance Guidelines for Listed Companies, Rules for Stock Listing of Shenzhen Stock Exchange
and relevant laws and regulations of China Securities Regulatory Commission to further regulate the Company operation and
improve the corporate government level. By the end of the reporting period, the actual situation of corporate governance conformed
to the normative documents on listed corporate governance issued by China Securities Regulatory Commission.
During the reporting period, the Company operated in strict accordance with national laws and regulations, Rules for Stock Listing of
Shenzhen Stock Exchange and Guidelines on the Standardized Operation of Listed Companies on the Main Board, and performed its
obligations of information disclosure in a timely, complete, true, accurate and fair manner. The Company has not received the
relevant documents of administrative supervision measures taken by the regulatory authorities.
(1) Shareholders and shareholders’ meeting
In strict accordance with the Rules of the Shareholders’ Meeting of Listed Companies and the Rules of Procedure of the Shareholders'
Meeting, the Company shall convene the shareholders’ meeting to ensure that all shareholders, especially minority shareholders,
enjoy equal status and fully exercise their rights.
(2) Company and controlling shareholders
The Company has independent business and operational independence and is independent from the controlling shareholders in
business, personnel, assets, institutions and finance. The Company's board of directors, the board of supervisors and interna l organize
operate independently. The controlling shareholders of the Company can strictly regulate their own behaviors, wit hout directly or
indirectly intervening in the Company's decision-making and business activities beyond the shareholders’ meeting.
(3) Directors and board of directors
The Company elects its directors in strict accordance with the recruiting procedures stipulated in the “Articles of Association”; all the
directors of the Company can carry out their work in accordance with the “Rules of Procedure of the Board of Directors” and
“Guidelines on the Behaviors of Directors of Listed Companies”, attend the board of directors and shareholders' meetings earnestly,
actively participate in the training of relevant knowledge, and be familiar with relevant laws and regulations.
(4) Supervisors and Board of Supervisors
The Company shall appoint supervisors in strict accordance with the relevant provisions of the Company Law and Articles of
Association, and the number and composition of the board of supervisors shall meet the requirements of laws and regulations. In
accordance with the requirements of the Rules of Procedure of the Board of Supervisors, the Company's supervisors can earnestly
perform their duties, effectively supervise the Company's major issues, related party transactions, financial condition, and the
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performance of directors and managers, and express independent opinions.
(5) Performance Evaluation and Incentive and Restraint Mechanisms
The Company is gradually establishing a fair and transparent performance evaluat ion standard and incentive and restraint mechanism
for directors, supervisors and managers. The appointme nt of the Company's managers is open and transparent and conforms to the
provisions of laws and regulations.
(6) Information Disclosure and Transparency
The Company carries out information disclosure and investor relations management under the board secretary responsibility system;
the Company performs the information disclosure procedure in strict accordance with the Measures for the Administration of
Information Disclosure and discloses the information on the designated information disclosure media such as Securities Times, China
Securities Journal, Securities Daily, Shanghai Securities News and cninfo in a true, accurate, complete and timely manner according
to law; meanwhile, according to the requirements of the Measures for the Investor Relations Management, the Company standardizes
investor reception procedures, receives visits and inquiries from shareholders, and ensures that all shareholders have equal access to
the Company information.
(7) Stakeholder
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizes the coordination and
balance of interests of the society, shareholders, the Company and employees, and jointly promotes the sustainable and steady
development of the Company.
(8) Internal Audit System
The Company has established an internal audit system and set up an internal audit department. The board of directors has appointe d
the person in charge of internal audit to effectively control the Company's daily operation and management, internal control system
and major issues of the Company. There is no significant difference between the actual situation of corporate governance and the
normative document
There is no significant difference between the actual situation of corporate governance and the normative documents on listed
corporate governance issued by China Securities Regulatory Commission. There is no significant difference between the actual
situation of corporate governance and the laws, administrative regulations and the provisions on the listed corporate governance
issued by China Securities Regulatory Commission.
II. Independence of the Company Relative to the Controlling Shareholders and Actual
Controllers in Ensuring the Company's Assets, Personnel, Finance, Organization, Business,
etc.
The Company operates in strict accordance with the Company Law and Articles of Association, establishes and improves the
corporate governance structure, is completely separated from the controlling shareholders in terms of business, personnel, assets,
institutions and finance, and has independent and complete business and independent operation capability.
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ROBAM 2021 Full Annual Report
III. Horizontal Competition
□ Applicable √ Not applicable
IV. Information About the Annual General Meeting of Shareholders and Extraordinary
General Meeting of Shareholders Held During the Reporting Period
1. General meeting of shareholders during the reporting period
Investor
Meeting session Meeting type participation Convening date Date of disclosure Meeting resolution
proportion
Extraordinary cninfo: The 1st
First extraordinary
general Extraordinary General
general meeting of 65.72% April 30, 2021 May 6, 2021
meeting of Meeting of Shareholders in
shareholders in 2021
shareholders 2021
Annual cninfo: The announcement
Annual general
general of resolutions of annual
meeting of 65.90% May 19, 2021 May 20, 2021
meeting of general meeting of
shareholders in 2020
shareholders shareholders in 2020
Extraordinary cninfo: The 2n d
The 2nd Extraordinary
general Extraordinary General
General Meeting of 65.83% August 23, 2021 August 24, 2021
meeting of Meeting of Shareholders in
Shareholders in 2021
shareholders 2021
2. The preferred shareholders with voting rights restored request an extraordinary general meeting of
shareholders
□ Applicable √ Not applicable
V. Directors, Supervisors and Senior Management
1. Basic information
Number
Number of of
Number of Number of
shares held shares
shares shares held at
Status of Start date End date of at the increase
Name Position Gender Age decreased in the end of the
service of tenure tenure beginning of d in
current period period
the period current
(shares) (shares)
(shares) period
(shares)
31
Leading global sales
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Create China’s new kitchen years
ROBAM 2021 Full Annual Report
Ren Incumbe August 18, August 17,
Chairman Male 65 5,923,150 0 0 5,923,150
Jianhua nt 2020 2023
Deputy
chairman Incumbe August 18, August 17,
Ren Fujia Male 38 2,800,075 0 700,000 2,100,075
, general nt 2020 2023
manager
Zhao Incumbe August 18, August 17,
Director Male 59 1,690,065 0 422,500 1,267,565
Jihong nt 2020 2023
Ren
Incumbe August 18, August 17,
Luozhon Director Male 59 1,690,062 0 422,500 1,267,562
nt 2020 2023
g
Director,
deputy
general
Wang manager, Incumbe August 18, August 17,
Male 46 576,750 0 0 576,750
Gang secretary nt 2020 2023
to the
board of
directors
Shen Incumbe August 18, August 17,
Director Male 56 1,524,264 0 381,000 1,143,264
Guoliang nt 2020 2023
Independ
Ma Incumbe August 18, August 17,
ent Male 68 0 0 0 0
Guoxin nt 2020 2022
director
Independ
He Incumbe August 18, August 17,
ent Male 66 0 0 0 0
Yuanfu nt 2020 2023
director
Independ
Chen Incumbe August 18, August 17,
ent Male 44 0 0 0 0
Yuanzhi nt 2020 2023
director
Chairman
of the
Zhang Incumbe August 18, August 17,
board of Male 56 1,112,315 0 278,000 834,315
Linyong nt 2020 2023
superviso
rs
Employe
Tang e Incumbe August 18, August 17,
Male 61 1,112,312 0 278,000 834,312
Genquan superviso nt 2020 2023
r
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ROBAM 2021 Full Annual Report
Zhang Supervis Incumbe August 18, August 17,
Male 55 1,112,312 0 278,000 834,312
Songnian or nt 2020 2023
Employe
Zhang e Incumbe August 18, August 17,
Female 43 0 0 0 0
Huifen superviso nt 2020 2023
r
Shen Supervis Incumbe August 18, August 17,
Male 62 53,875 0 0 53,875
Yueming or nt 2020 2023
Deputy
Xia Incumbe August 18, August 17,
general Male 46 411,950 0 0 411,950
Zhiming nt 2020 2023
manager
Deputy
He Incumbe August 18, August 17,
general Male 47 411,950 0 0 411,950
Yadong nt 2020 2023
manager
Chief
Zhang Incumbe August 18, August 17,
financial Male 52 411,950 0 0 411,950
Guofu nt 2020 2023
officer
Total -- -- -- -- -- -- 18,831,030 0 2,760,000 16,071,030
During the reporting period, whether there was any resignation of directors and supervisors and dismissal of senior managers during
their term of office
□ Yes √ No
Change of directors, supervisors and senior management
□ Applicable √ Not applicable
2. Service status
Professional background, main work experience and main responsibilities currently in the Company of current directors, supervisors
and senior management of the Company
1. Resume of current directors
Mr. Ren Jianhua, Han nationality, born in August 1956, Chinese, without permanent residency abroad; junior high school education,
member of Communist Party of China, economist. He began to work in 1978 and successively served as the supply and marketing
section chief and factory director of Yuhang Hongxing Hardware Factory, the chairman, general manager and Secretary of the Party
branch of Hangzhou ROBAM Industrial Group Co., Ltd., and the chairman and general manage r of Hangzhou ROBAM Home
Appliances & Kitchen Sanitary Co., Ltd. He has won the titles of national model worker and outstanding member of Communist
Party of Zhejiang Province, and was elected as the deputy to the 8th and 10th National People's Congress of Zhejiang Province, deputy
to the 11th National People's Congress of Hangzhou City, the Party representative, deputy to the 12 th National People's Congress of
Hangzhou City, and the 12th Fengyun Zhejiang Merchants. At present, he is the chairman of Hangzhou ROBAM Appliances Co., Ltd.,
ROBAM Industrial Group Co., Ltd., Hangzhou Nbond Nonwoven Co., Ltd., Hangzhou Guoguang Touring Com modity Co., Ltd.,
Hangzhou Amblem Kitchenware Co., Ltd., the executive director and general manager of Hangzhou Mingqi Electric C o., Ltd., the
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ROBAM 2021 Full Annual Report
executive director and general manager of Hangzhou ROBAM Fuchuang Investment Management Co., Ltd., the deputy cha irman of
Garden Hotel Hangzhou, the director of Zhejiang Hangzhou Yuhang Rural Commercial Bank Company Limited, Hangzhou
Dongming Forest Park Co., Ltd., Zhejiang CFMOTO Power Co., Ltd, the executive director of Hangzhou Bonyee Daily Necessity
Technology Co., Ltd., the executive director and general manager of Hangzhou Jinchuang Investment Co., Ltd., the executive partner
of Hangzhou Jinnuochang Investment Management Partnership (Limited Partnership), deputy to the 13 th Hangzhou Municipal
People's Congress.
Mr. Ren Fujia, Han nationality, born in January 1983, Chinese, without permanent residency abroad; bachelor degree. He used to be
the product manager of marketing department and the deputy general manager of R & D center of Hangzhou ROBAM Industrial
Group Co., Ltd., the deputy general manager of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd.; now he is the
director of Hangzhou Nbond Nonwoven Co., Ltd., the deputy chairman and general manager of Hangzhou ROBAM Appliances Co.,
Ltd., the director of Hangzhou Amblem Kitchenware Co., Ltd., the director of De Dietrich Household Appliances Trading (Shanghai)
Co., Ltd., and the deputy chairman of De Dietrich Trade (Shanghai) Co., Ltd.
Mr. Zhao Jihong, Han nationality, born in December 1962, Chinese, without permanent residency abroad; master degree, senior
economist; successively served as the chairman and general manager of Hube i Huangshi Jinye Group Co., Ltd, the deputy general
manager and general manager of the marketing center of ROBAM Group, the deputy general manager and general manager of the
marketing center of ROBAM Home Appliances, and the deputy general manager of the C ompany. He has successively won the titles
of national outstanding entrepreneur, outstanding Hangzhou merchant in the World, "Top 10 influential figures in China's kitchen and
bathroom industry", "Top 10 personalities in China's home appliance industry", and twice won the Mondale world economic man
achievement award and was selected into the dictionary of Chinese experts and celebrities. At present, he is the director of the
Company, the director of uTransHub Technologies Co., Ltd., the director of De Dietrich Household Appliances Trading (Shanghai)
Co., Ltd.; the director and general manager of Hangzhou ROBAM Appliances Co., Ltd., the director of Shengzhou Kinde Intelligent
Kitchen Electric Co., Ltd., and the chairman of Zhejiang Cooking Future Technology Co., Ltd.
Mr. Ren Luozhong, Han nationality, born in August 1962, Chinese, without permanent residency abroad; EMBA, assistant economist.
He began to work in 1982 and successively served as the operation director of Yuhang Hongxing Hardware Factory, the deputy
general manager, general manager of the marketing center, general manager of the technology center and director of the first
production department of ROBAM Group, the director and deputy general manager of ROBAM Home Appliances, and the deputy
general manager of the Company. At present, he is the director of the Company, the director of Hangzhou ROBAM Industrial Group
Co., Ltd., the president of Hangzhou Yuhang District ROBAM Charity Foundation.
Mr. Wang Gang, Han nationality, born in October 1975, Chinese, without permanent residency abroad; master degree, EMBA of
China Europe International Business School, member of Communist Party of China, certified public accountant, senior economist.
He began to work in 1997 and successively served as an inspector of Haining Local Taxation Bureau of Zhejiang Province, the R &
D director of Shanghai Realize Investment Consulting Co., Ltd., the secretary of the board of directors, director of human resources,
general manager assistant of Shanghai Hailong Software Co., Ltd, and the secretary of the board of directors of Hangzhou ROBAM
Home Appliances & Kitchen Sanitary Co., Ltd. At present, he is the director, secretary of the board of directors, deputy general
manager of the Company, the director of Hangzhou Nbond Nonwoven Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen
Electric Co., Ltd., the director of De Dietrich Household Appliances Trading (Shanghai) Co., Ltd., the director of De Dietrich Trade
(Shanghai) Co., Ltd., the supervisor of Hangzhou ROBAM Fuchuang Investment Management Co., Ltd., the director of Hangzhou
Guoguang Touring Commodity Co., Ltd., the director of Hangzhou Zhu Bingren Culture and Art Co., Ltd., the director of Hangzhou
Fortune Gas Cryogenic Group Co., Ltd., the director of Versolsolar Hangzhou Co., Ltd., the director of Hangzhou Wheeler General
Machinery Co., Ltd., the independent director of Hangzhou Great Star Industrial Co., Ltd., the independent director of Hangzhou
Xiaodian Technology Co., Ltd., and the supervisor of Shangha i MXCHIP Information Technology Co., Ltd.
Mr. Shen Guoliang, Han nationality, born in November 1965, Chinese, without permanent residency abroad; high school education.
He began to work in 1982 and successively served as the chief of the transportation section of Yuhang Hongxing Hardware Factory,
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ROBAM 2021 Full Annual Report
the director, chief financial officer and the deputy general manager of the marketing center of ROBAM Group, the director of
ROBAM Home Appliances, and the chairman of the board of supervisors of the Company. At present, he is the director of the
Company, the deputy chairman of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., the director of Zhejiang Cooking Future
Technology Co., Ltd., the supervisor of Hangzhou Amblem Kitchenware Co., Ltd., and the supervis or of Beijing ROBAM Electric
Appliance Sales Co., Ltd.
Mr. Ma Guoxin, Han nationality, born in September 1953, Chinese, without permanent residency abroad; member of Communist
Party of China, bachelor degree. He began to work in 1970 and successively served as the office director of the Company (Party
committee), deputy manager (and secretary) of the sales company of Hangzhou Medical Equipment Factory (later changed into
Hangzhou Refrigerator General Factory, Hangzhou Xiling Electrical Appliance Group Co., Ltd.), the director of household appliance
industry management department and deputy secretary general of Zhejiang Household Ap pliance Association. At present, he is the
secretary general and vice president of Zhejiang Household Appliance Association; the independent director of AUPU Home Style
Corporation Limited and the Company.
Mr. He Yuanfu, Han nationality, born in March 1955, bachelor degree, Chinese, without permanent residency abroad; professor-level
senior accountant, certified public accountant, retired in January 2012. At present, he is the independent director of the Company, the
independent director of Zhejiang Yilida Ventilator Co., Ltd., the independent director of Sichuan Langsha Holding Ltd., the
independent director of CertusNet Information Co., Ltd., and the independent director of Zhejiang Ruirentang Pharmaceutical Chain
Co., Ltd. He used to be the chief member of the accounting management office of Zhejiang Provincial Department of Finance, the
Secretary General of Zhejiang Institute of Certified Public Accountants, the director of Zhejiang Financial Cadre Education Center,
and the vice president of Zhejiang Zhonghua Accounting Correspondence School.
Mr. Chen Yuanzhi, Han nationality, born in November 1977, Chinese, member of Communist Party of China, doctor degree in
management, is now the independent director of the Company, a professor of China Executive Leadership Academy Pudong, an
adjunct professor of East China Normal University, a part-time researcher at the Research Center of Technological Innovation,
Tsinghua University, the executive director of China Soft Science Research Society, a member of the Chines e Institute of Business
Administration (Special Committee for Future Analysis and Management of Emerging Technologies), and an expert of Shanghai
Science and Technology Expert Database.
2. Resume of current supervisors
Mr. Zhang Linyong, Han nationality, born in August 1965, Chinese, without permanent residency abroad; high school education,
member of Communist Party of China, assistant economist. He began to work in 1984 and successively served as the office director
of Yuhang Hongxing Hardware Factory, the general manager of Hangzhou Huafa Electric Appliance Co., Ltd., the director and
director of the engineering department of ROBAM Group, and the director of ROBAM Home Appliances. At present, he is the
chairman of the board of supervisors of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd.
Mr. Tang Genquan, Han nationality, born in October 1960, Chinese, without permanent residency abroad; college degree, engineer.
He began to work in 1979 and successively served as the mould workshop director and technical director of Yuhang Hongxing
Hardware Factory, the deputy general manager of technology, general manager of production quality and director of the third
production department of ROBAM Group, the director of ROBAM Home Appliances. In 1993-1994 and 2005-2006, he was awarded
as the outstanding scientific and technological worker of Hangzhou. In 2004, he was selected into the "new century talent project 139
youth talent cultivation candidate list", applied for 1 national invention patent, 7 utility model patents and 10 design patents. He has
been employed as a member of China daily hardware industry expert committee since 1996 and the deputy secretary general of fifth
China daily hardware industry expert committee since 2006. At present, he is the employee representative supervisor of the Company,
the director of Hangzhou ROBAM Industrial Group Co., Ltd., the supervisor of Hangzhou Yuhang ROBAM Gas Station Co., Ltd.,
and the secretary general of Hangzhou Yuhang District ROBAM Charity Foundation.
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ROBAM 2021 Full Annual Report
Mr. Zhang Songnian, Han nationality, born in September 1966, Chinese, without permanent residency abroad; high school education.
He began to work in 1983 and successively served as the production section chief of Yuhang Hongxing Hardware Factory, the de puty
general manager of Hangzhou Huafa Electric Appliance Co., Ltd., the director, deputy director of production department, dire ctor of
the second production department and general manager of product R & D center of ROBAM Group, and the supervisor of ROBA M
Home Appliances. At present, he is the supervisor of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd.
Ms. Zhang Huifen, Han nationality, born in October 1977, Chinese, without permanent residency abroad; college degree, junior
economist, junior accountant. She began to work in 1997 and successively served as the employee of Hangzhou Gaobo Electronic
Co., Ltd., the employee of punching machine third workshop, member of audit department of marketing center and office clerk of
financial center of ROBAM Group. At present, he is the employee representative supervisor of the Company.
Mr. Shen Yueming, Han nationality, born in November 1959, Chinese, without permanent residency abroad; high school education.
He began to work in 1978 and successively served as the factory director of Tingzhi Food Factory of Yuhang Supply and Marketing
Cooperative, the production section director of Hangzhou Huafa Electric Appliance Co., Ltd., and the general manager of Beijing
ROBAM Electric Appliance Sales Co., Ltd. At present, he is the supervisor of the Company.
3. Resume of current senior management
Mr. Ren Fujia is the general manager of the Company; Mr. Wang Gang is the deputy general manager of the Company. Please refer to
the resume of the directors of the Company for the introduction.
Mr. Xia Zhiming, Han nationality, born in May 1975, Chinese, without permanent residency abroad; college degree. He began to
work in 1996 and successively served as the production section chief of Qiaori Electric Products Fac tory, the manufacturing director
of Foxconn Technology Co., Ltd. and the production director of the Company's production center. At present, he is the deputy general
manager of the Company.
Mr. He Yadong, Han nationality, born in August 1974, Chinese, without permanent residency abroad; bachelor degree, senior
economist. He began to work in 2000 and successively served as the marketing section chief, director of marketing department and
deputy general manager of marketing center of ROBAM Group, the assistant to general manager of ROBAM Home Appliances, and
director of the Company. At present, he is the deputy general manager of the Company.
Mr. Zhang Guofu, Han nationality, born in December 1969, Chinese, without permanent residency abroad; bachelor degree. He
began to work in 1990 and successively served as the capital section chief, director of financial center of Hangzhou ROBAM
Industrial Group Co., Ltd., and financial chief of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present, he
is the Chief financial officer of the Company, the chairman of the board of supervisors of Hangzhou Nbond Nonwoven Co., Ltd., the
supervisor of Hangzhou Mingqi Electric Co., Ltd., the supervisor of De Dietrich Household Appliances Trading (Shanghai) Co., Ltd.,
the director of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., and the director of De Dietrich Trade (Shanghai) Co., Ltd.
Service status in the shareholder unit
√ Applicable □ Not applicable
Whether to receive
Position held in remuneration or
Name of staff Shareholder unit name
shareholder unit allowance in the
shareholder unit
Hangzhou ROBAM Industrial Group Co., Ltd. Chairman No
Ren Jianhua Executive
Hangzhou Jinchuang Investment Co., Ltd. No
director
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Create China’s new kitchen years
ROBAM 2021 Full Annual Report
Ren Luozhong Hangzhou ROBAM Industrial Group Co., Ltd. Deputy chairman No
Zhao Jihong Director, general
Hangzhou ROBAM Industrial Group Co., Ltd. No
manager
Shen Guoliang Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Zhang Linyong Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Tang Genquan Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Zhang Songnian Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Description of
service status in the N/A
shareholder unit
Service status in other unit
√ Applicable □ Not applicable
Whether to
receive
Name of staff Other unit name Position held in other unit remuneration
or allowance
in other unit
Hangzhou Amblem Kitchenware Co., Ltd. Chairman No
Garden Hotel Hangzhou Deputy chairman No
Hangzhou Dongming Forest Park Co., Ltd. Director No
Hangzhou Nbond Nonwoven Co., Ltd. Chairman No
Zhejiang Hangzhou Yuhang Rural Commercial Bank
Director No
Company Limited
Ren Jianhua Hangzhou Yuhang ROBAM Gas Station Co., Ltd. Chairman No
Hangzhou Jinnuochang Investment Management Partnership
Executive partner No
(Limited Partnership)
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Executive director No
Zhejiang CFMOTO Power Co., Ltd Director No
Executive director and
Hangzhou Mingqi Electric Co., Ltd. No
general manager
De Dietrich Trade (Shanghai) Co., Ltd. Deputy chairman No
Ren Fujia Hangzhou Amblem Kitchenware Co., Ltd. Director No
Hangzhou Nbond Nonwoven Co., Ltd. Director No
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Chairman No
Zhao Jihong
uTransHub Technologies Co., Ltd. Director No
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De Dietrich Household Appliances Trading (Shanghai) Co.,
Director No
Ltd.
Zhejiang Cooking Future Technology Co., Ltd. Chairman No
Ren Luozhong Hangzhou Amblem Kitchenware Co., Ltd. Director No
Hangzhou Amblem Kitchenware Co., Ltd. Supervisor No
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director No
Shen Guoliang
Beijing ROBAM Electric Appliance Sales Co., Ltd. Supervisor No
Zhejiang Cooking Future Technology Co., Ltd. Director No
Secretary general, vice
Zhejiang Household Appliances Association Yes
Ma Guoxin president
AUPU Home Style Corporation Limited Independent director Yes
Sichuan Langsha Holding Ltd. Independent director Yes
CertusNet Information Co., Ltd. Independent director Yes
He Yuanfu
Zhejiang Ruirentang Pharmaceutical Chain Co., Ltd. Independent director Yes
Zhejiang Yilida Ventilator Co., Ltd. Independent director Yes
China Executive Leadership Academy Pudong Professor Yes
Chen Yuanzhi Research Center of Technological Innovation, Tsinghua
Researcher No
University
Hangzhou Zhu Bingren Culture and Art Co., Ltd. Director No
Hangzhou ROBAM Fuchuang Investment Management Co.,
Supervisor No
Ltd.
Shanghai MXCHIP Information Technology Co., Ltd. Supervisor No
Hangzhou Great Star Industrial Co., Ltd. Independent director Yes
Hangzhou Xiaodian Technology Co., Ltd. Independent director Yes
Hangzhou Fortune Gas Cryogenic Group Co., Ltd. Director No
Wang Gang Versolsolar Hangzhou Co., Ltd. Director No
Hangzhou Nbond Nonwoven Co., Ltd. Director No
De Dietrich Trade (Shanghai) Co., Ltd. Director No
De Dietrich Household Appliances Trading (Shanghai) Co.,
Director No
Ltd.
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director No
Hangzhou Wheeler General Machinery Co., Ltd. Director No
Hangzhou Guoguang Touring Commodity Co., Ltd. Director No
Zhang Guofu De Dietrich Trade (Shanghai) Co., Ltd. Director No
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De Dietrich Household Appliances Trading (Shanghai) Co.,
Supervisor No
Ltd.
Hangzhou Mingqi Electric Co., Ltd. Supervisor No
Chairman of the board of
Hangzhou Nbond Nonwoven Co., Ltd. No
supervisors
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director No
Punishment of current directors, supervisors and senior management of the Company and those who left during the reporting per iod
by securities regulators in recent three years
□ Applicable √ Not applicable
4. Remuneration of Directors, Supervisors and Senior Management
Decision making procedures, determination basis and actual payment of remuneration of directors, supervisors and senior
management
The Company has established a sound performance appraisal system and salary system for senior management, whose work
performance is directly linked to their income. The remuneration and appraisal committee of the board of directors is respons ible for
the year-end assessment of the working ability, performance of duties, completion of responsibility objectives, etc. of the senior
management, and preparing the remuneration plan and submitting it to the board of directors of the Company for approval. The
remuneration of directors, supervisors and senior management shall be paid on time.
Remuneration of directors, supervisors and senior management during the reporting period
Unit: yuan
Whether to
get
Total pretax
remuneratio
Gend remuneration
Name Position Age Status of service n from
er received from the
related
Company
parties of the
Company
Ren Jianhua Chairman Male 65 Incumbent 876,643.59 No
Deputy chairman,
Ren Fujia Male 38 Incumbent 1,063,534.1 No
general manager
Ren Luozhong Director Male 59 Incumbent 820,152.95 No
Zhao Jihong Director Male 59 Incumbent 848,398.27 No
Director, secretary and
Wang Gang Male 46 Incumbent 888,338.11 No
deputy general manager
Shen Guoliang Director Male 56 Incumbent 735,416.99 No
Ma Guoxin Independent director Male 68 Incumbent 95,238 No
He Yuanfu Independent director Male 66 Incumbent 95,238 No
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Chen Yuanzhi Independent director Male 44 Incumbent 95,238 No
Chairman of the board of
Zhang Linyong Male 56 Incumbent 678,926.35 No
supervisors
Tang Genquan Supervisor Male 61 Incumbent 832,000.53 No
Zhang
Supervisor Male 55 Incumbent 678,926.35 No
Songnian
Zhang Huifen Supervisor Male 43 Incumbent 140,770.33 No
Shen Yueming Supervisor Male 62 Incumbent 285,698.1 No
He Yadong Deputy general manager Male 47 Incumbent 1,322,446.46 No
Xia Zhiming Deputy general manager Male 46 Incumbent 988,200.06 No
Zhang Guofu Chief financial officer Male 52 Incumbent 905,452.14 No
Total -- -- -- -- 11,350,618.33 --
VI. Performance of Duties by Directors During the Reporting Period
1. Board of Directors during this reporting period
Meeting session Convening date Date of disclosure Meeting resolution
cninfo: The announcement of
th
The 4 Meeting of the Fifth resolutions of the 4th Meeting
April 14, 2021 April 15, 2021
Board of Directors of the Fifth Board of
Directors
cninfo: The announcement of
The 5th Meeting of the Fifth resolutions of the 5th Meeting
April 27, 2021 April 28, 2021
Board of Directors of the Fifth Board of
Directors
cninfo: The announcement of
th
The 6 Meeting of the Fifth resolutions of the 6th Meeting
May 10, 2021 May 11, 2021
Board of Directors of the Fifth Board of
Directors
cninfo: The announcement of
th
The 7 Meeting of the Fifth resolutions of the 7th Meeting
August 3, 2021 August 4, 2021
Board of Directors of the Fifth Board of
Directors
cninfo: The announcement of
th
The 8 Meeting of the Fifth resolutions of the 8th Meeting
October 19, 2021 October 20, 2021
Board of Directors of the Fifth Board of
Directors
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2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Whether not
Number of
Number of to personally
board Number of Number of
board Number of attend the Number of
meetings to board board
Name of meetings board board shareholders'
be attended meetings meetings
director attended by meetings meeting for meetings
during this attended on delegated to
corresponde absent two attended
reporting site attend
nce consecutive
period
times
Ren Jianhua 5 4 1 0 0 No 3
Ren Fujia 5 4 1 0 0 No 3
Ren Luozhong 5 4 1 0 0 No 3
Zhao Jihong 5 4 1 0 0 No 1
Wang Gang 5 4 1 0 0 No 3
Shen Guoliang 5 4 1 0 0 No 3
Ma Guoxin 5 4 1 0 0 No 3
He Yuanfu 5 3 2 0 0 No 3
Chen Yuanzhi 5 2 3 0 0 No 3
Description on failure to personally attend the board meeting for two consecutive times
3. Objections made by directors on relevant matters
Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other description on the performance of duties by the directors
Whether the relevant suggestions of the director to the Company have been adopted
□ Yes √ No
Explanation of the relevant suggestions of the director to the Company have or have not been adopted
N/A
VII. Special Committees under the Board of Directors During the Reporting Period
Name of Nu mber
Member Convening date Meeting content
committee of
41
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ROBAM 2021 Full Annual Report
meet ings
held
January 8, 2021 1. Rev iew the “2020 Audit Work Plan of the Co mpany”
He
1. Rev iew the “2020 Audit Report of the Co mpany” 2. Review the “2020
Yuanfu,
Internal Control Self-evaluation Report of the Co mpany” 3. Review of the
Audit Chen April 27, 2021
4 “First Quarter Report of the Co mpany in 2021” 4. Proposal on Further
committee Yuanzh i,
Appointment of the Co mpany's Audit Institution in 2021”
Ren
August 3, 2021 1. Rev iew the “2021 Semiannual Report of the Co mpany”
Luozhong
October 19, 2021 1. Rev iew the “Third Quarter Report of the Co mpany in 2021”
January 20, 2021 1. “Proposal on Performance Appraisal of Senior Managers in 2020”
Ren 1. “2021 Stock Option Incentive Plan (Draft) of the Co mpany” and its Abstract;
Remuneration
Fujia, Ma 2. “Management Measures for Implementation and Assessment of 2021 Stock
and
Guo xin, 2 Option Incentive Plan (Draft) of the Co mpany”; 3. “Shareholding Plan of
assessment April 14, 2021
Chen Business Partners of the Co mpany (Draft)” and its Abstract; 4. “Management
committee
Yuanzh i Measures for Implementation and Assessment of Shareholding Plan of Business
Partners of the Co mpany”
VIII. Work of Board of Supervisors
Whether the board of supervisors find any risk of the Company in the supervision activities during the reporting period
□ Yes √ No
The board of supervisors has no objection to the supervisory matters during the reporting per iod.
IX. Company Employees
1. Number of employees, professional composition and education background
Nu mber of employees in the parent company at the end of th e
3,009
reporting period (person)
Nu mber of employees in major subsidiaries at the end of the reporting
1,870
period (person)
Total number of emp loyees at the end of the reporting period (person) 4,879
Total number of employees receiving salary in the current period
4,944
(person)
Nu mber of retired employees whose expenses need to be borne by the
65
parent company and major subsidiaries (person)
Professional composition
Professional composition categories Nu mber of p rofessionals (person)
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Production personnel 1,323
Sales personnel 1,768
Technical personnel 876
Financial personnel 173
Admin istrative personnel 759
Total 4,879
Education background
Education background categories Nu mber (person)
Doctor 8
Master 155
Bachelor 1,310
College 1,039
Other 2,367
Total 4,879
2. Pay policy
The company has formulated "Salary Management Standards" and "Performance Management Standards", and established a salary
management system based on the post value and centered on the competency and performance evaluation of employees, according to
the salary status of the regional market and industry.
3. Training plan
In 2021, the Company carried out various trainings, including Lemon, Blue Whale, Sunflower, Ivy League and other projects as well
as the Elite Plan; As the Company's own mobile learning online platform, Chestnut School played an important role in the
achievement transformation of the development course of internal trainer, and the Company's employees' participation in learning has
been greatly improved. A series of activities such as the vice platform and super open class enrich the vision of employees and
improves their abilities.
4. Labor outsourcing
√ Applicable □ Not applicable
Total hours of labor outsourcing (hours) 2,811,411
Total remuneration paid for labor outsourcing (yuan) 110,198,689.54
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X. Profit Distribution and Share Capital Increase from Capital Surplus
Profit distribution policy during the reporting period, especially the formulation, implementation or adjustment of cash dividend
policy
√ Applicable □ Not applicable
Description for cash dividend policy
Does it meet the requirements of the Company’s articles of association and of the
Yes
resolutions of shareholders’ meeting?
Is the dividend distribution standard and proportion specific and clear? Yes
Are relevant decision-making procedures and mechanisms complete? Yes
Have the independent directors performed their duties and fulfilled their due roles? Yes
Do the minor shareholders have the chance to fully express their opinions and
Yes
demands, and are their legal rights and interests fully protected?
Are the conditions and procedures normative and transparent in case of adjustments
Yes
or changes of the cash dividend policy?
The Company made profits during the reporting period and the profits available for distribution to shareholders of the parent
company were positive, but no proposal for the distribution of cash dividend was put forward
□ Applicable √ Not applicable
Profit distribution and share capital increase from capital surplus dur ing the reporting period
√ Applicable □ Not applicable
Amount of cash dividend in other forms (e.g.
0.00
share repurchase) (yuan)
Amount of cash dividend (including other forms)
472,047,458.00
(yuan)
Ratio of total amount of cash dividend (including
other forms) to total amount of distributable 100%
profit
Cash dividend distribution in this period
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account
for a minimum of 20% of the profit distribution when the profit is distributed.
Description for details of profit distribution or share capital increase from capital surplus plan
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Com pany’s net profit
attributable to the parent company owner in 2021 was RMB 1,324,141,354.33 yuan (number of parent company), plus the
undistributed profit of RMB 6,120,603,639.69 yuan at the beginning of the year, minus the cash dividend of profit distribution of
2020, i.e., RMB 473,435,158.00 yuan, the Company's profit available to shareholders at the end of 2021 was RMB
6,971,309,836.02 yuan.
Taking 944,094,916 shares as the radix (the existing total capital stock of 949,024,050 shares, excluding 4,929,13 4 shares
repurchased), the Company distributed cash dividends of 5 yuan (tax inclusive) for every 10 sha res to all shareholders,
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amounting up to a total of RMB 472,047,458.00 yuan.
In case of any change due to the listing of new shares, the exercising of equity incentive, the conversion of convertible bonds into
shares, share repurchase, etc. during the period from the disclosure of the distribution plan to the equity registration date when
the profit distribution is implemented, the distribution proportion will be adjusted accordingly according to the principle that the
total amount of cash dividends will remain unchanged.
XI. Imple mentation of the Company's Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures
√ Applicable □ Not applicable
1. Equity incentive
I. 2021 stock option incentive plan
1. On April 14, 2021, the Company held the 4th meeting of the fifth board of directors, deliberated and adopted the “Proposal on
2021 Stock Option Incentive Plan (Draft) of the Company and its Abstract” and other relevant proposals, and the independent
directors expressed their agreed independent opinions on the matters related to the Company's stock option incentive plan. The
4th meeting of the fifth board of supervisors of the Company deliberated and adopted the above-mentioned relevant proposals
and expressed their consent. The Company disclosed the above matters on April 15, 2021.
2. From April 15, 2021 to April 24, 2021, the Company publicized the names and positions of the incentive objects of the stock
option incentive plan through internal posting. On April 27, 2021, the board of supervisors of the Company issued the “Review
Opinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2021 Stock Option Ince ntive
Plan”. On the same day, the Company disclosed the “Self-inspection Report on Insiders’ and Incentive Objects’ Trading of
Company Stock with Inside Information of 2021 Restricted Stock Incentive Plan”.
3. On April 30, 2021, the Company held the first extraordinary general meeting of shareholders in 2021, deliberated and adopted
the “Proposal on 2021 Stock Option Incentive Plan (Draft) of the Company and its Abstract” and other relevant proposals. The
plan was approved by the first extraordinary general meeting of shareholders in 2021, and the board of directors was authorized
to determine the grant date of stock option, grant stock option to incentive objects when they meet the conditions and handle all
matters necessary for granting equity.
4. On May 10, 2021, the Company’s 6th meeting of the fifth Board of Directors and the 6th meeting of the fifth Board of
Supervisors reviewed and adopted the “Proposal on Granting Stock Options to Incentive Objects”. The board of supervisors
once again verified the list of incentive objects granted and expressed their consent. The independent directors of the Company
expressed their independent opinions on this.
II. Business Partner Shareholding Plan
On April 14, 2021, the Company held the 4th meeting of the fifth board of directors and the 4th meeting of the fifth board of
supervisors, and deliberated and adopted the “Business Partner Shareholding Plan of Hangzhou ROBAM Appliances Co.,
Ltd.(Draft).”
Evaluation mechanism and incentive of senior managers
please refer to relevant chapters of the “Business Partner Shareholding Plan of Hangzhou ROBAM Appliances Co., Ltd.(Draft)” for
details.
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2. Implementation of the employee stock ownership plan
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
XII. Construction and Imple mentation of Internal Control System During the Reporting
Period
1. Construction and implementation of internal control
See the “2021 Internal Control Self-evaluation Report” disclosed by the Company on the designated information disclosure website
http://www.cninfo.com.cn for details.
2. Details of significant internal control defects discovered during the reporting period
□ Yes √ No
XIII. Manage ment and Control of Subsidiaries During the Reporting Period
Appoint directors or senior managers to hold regular business and financial meetings every month according to the Company's
development and business objectives specified in the annual budget planning meeting, and timely review and follow up the
implementation of the subsidiaries’ business plans and the completion of various performance evaluation indicators. According to the
requirements of the Company's “Information Disclosure Management System”, each subsidiary shall timely report relevant
information on major business / financial matters to the headquarters of the listed company, give timely feedback on the progress or
changes of major matters, and perform the approval procedures of the board of directors and the general meeting of shareholders
when necessary.
XIV. Internal Control Self-evaluation Report or Internal Control Audit Report
1. Internal control self-evaluation report
Full disclosure date of internal control
April 20, 2022
self-evaluation report
Index of full disclosure of internal
cninfo: Full text of internal control evaluation report of ROBAM
control evaluation report
Proportion of the total assets of the unit
included in the evaluation scope to the
100.00%
total assets of the consolidated financial
statement of the Company
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Proportion of operating income of the
unit included in the evaluation scope to
100.00%
the operating income of the consolidated
financial statement of the Company
Defect identification standard
Category Financial report Non-financial report
Signs of major defects in the financial
report include:
1) Corrupt practice of directors,
supervisors and senior management;
2) Misstatement correction of material 1) The defects in non-financial
errors in financial reports that have reports are mainly determined
been announced by the Company; according to the influence of the
3) Material misstatement in the current defects on the business process
financial report, which is not found effectiveness and the possibility of
by the internal control in the process occurrence;
of operation; 2) The defects with low possibility
4) Ineffective control and supervision of that will reduce the work
the Company’s external and internal efficiency or effect, or increase the
financial reports by the audit uncertainty of the effect, or make
committee and audit department. it deviate from the expected goal
Signs of important defects in the financial are common defects;
report include: 3) The defects with high possibility
Qualitative standard 1) Failure to select and apply that will significantly reduce the
accounting policies in accordance work efficiency or effect, or
with generally accepted accounting significantly increase the
principles; uncertainty of the effect, or make
it significantly deviate from the
2) No anti-fraud procedures and control
expected goal are important
measures have been established;
defects;
3) There is no corresponding control
4) The defects with high possibility
mechanism established or no
that will seriously reduce the work
implementation of and no
efficiency or effect, or seriously
corresponding compensatory control
increase the uncertainty of the
for the accounting treatment of
effect, or make it seriously deviate
non-routine or special transactions;
from the expected goal are major
4) One or more defects in the control of
defects.
the final financial reporting process
and no reasonable assurance that the
financial statements will achieve the
objective of authenticity and
completeness. Common defects refer
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to control defects other than the
major defects and important defects
mentioned above.
The quantitative standard takes the
operating income and the total assets as
the measurement index.
1) The internal control defects that may
cause losses or whose losses are related to
the income statement are measured on the
basis of operating income:
Common defect: misstatement amount <
1% of operating income;
Important defect: 1% of operating income Common defect: direct property loss <
< misstatement amount < 2% of operating RMB 5 million;
income; Important defect: RMB 5 million <
Quantitation standard
Major defect: misstatement amount > 2% direct property loss < RMB 20 million;
of operating income Major defect: direct property loss ＞
2) The internal control defects that may RMB 20 million.
cause losses or whose losses are related to
the assets management are measured on
the basis of total assets:
Common defect: misstatement amount <
0.5% of total assets;
Important defect: 0.5% of total assets <
misstatement amount < 1% of total assets;
Major defect: misstatement amount ＞1%
of total assets
Number of major defects in financial
0
reports
Number of major defects in
0
non-financial reports
Number of important defects in financial
0
reports
Number of important defects in
0
non-financial reports
2. Internal control audit report
□ Applicable √ Not applicable
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XV. Rectification of Proble ms in Self-inspection of Special Actions for Governance of Listed
Companies
According to the requirements of the regulatory authorities, the Company has carried out a four-month special self-inspection on the
governance of listed companies since December 17, 2020. This special self-inspection has comprehensively reviewed the corporate
governance in seven aspects: the basic situation of listed companies, the operation and decision-making of organizations, the
controlling shareholders, actual controllers and related parties, the construction of internal control standard system, information
disclosure and transparency, and institutions / foreign investors; find problems and deficiencies according to the regulatory rules, the
Articles of Association and other normative documents, take the special self-inspection activity as an opportunity to improve the
governance level and safeguard the interests of investors. Through such self-inspection, the Company does not violate the provisions
of the state and the CSRC. The corporate governance level meets the requirements of laws and regulations such as the Company Law,
the Securities Law, the Guidelines for Standard Operation of Listed Companies of Shenzhen Stock Exchange and the Guidelines for
Articles of Association of Listed Companies, and the Company’s governance structure is relatively perfect and its operation is
standardized. The Company will continue to sort out and update the issued internal control system of the Company in a timely
manner in accordance with the existing laws and regulations, and constantly establish and improve the internal control system of the
Company to make it play a real and effective role.
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Section 5 Environmental and Social Responsibility
I. Major Environme ntal Issues
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental protection
authorities
□ Yes √ No
Measures taken to reduce carbon emissions during the reporting period and relevant effects
□ Applicable √ Not applicable
Reasons for non-disclosure of other environmental information
N/A
II. Social Responsibility
See the “2021 Environmental, Socia l and Corporate Governance Report” disclosed by the Company on the designated information
disclosure media http://www.cninfo.com.cn for details.
III. Consolidate and Expand the Achievements of Poverty Alleviation and Rural
Revitalization
N/A
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Section 6 Important Matters
I. Performance in Fulfilling Commitme nts
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the Company’s
actual controller, shareholders, related parties, acquirer and other commitment parties
√ Applicable □ Not applicable
Time
Degr
limit
Commit ee of
Commitme Commitment Commitm for
ment Commitment content perfo
nt reason party ent time acce
type rman
ptanc
ce
e
Directors,
supervisors
Commit After the expiry of the 36-month sales restriction
and senior
ment to period, the shares transferred each year during his/her Strict
management
restrictio tenure shall not exceed 25% of the total number of Novembe Long perfo
directly or
n on shares held directly or indirectly in the Company; the r 23, 2010 -term rman
indirectly
sales of Company shares directly or indirectly held shall not be ce
holding
shares transferred within six months after the resignation
shares of the
Company
1. The Company/I and other enterprises under the
Commitme control of the Company/me do not, and will not,
nt made at directly or indirectly, engage in any activities that
the time of constitute horizontal competition with the existing and
IPO or future business of ROBAM and its holding
Commit
refinancing Hangzhou subsidiaries; 2. If any business opportunity obtained
ment on
ROBAM the Company/I and other enterprises under the control Strict
avoiding
Industrial of the Company/me from any third party constitutes or Novembe Long perfo
horizont
Group Co., may constitute substantial competition with the r 23, 2010 -term rman
al
Ltd.; Ren business of ROBAM, the Company/I will immediately ce
competit
Jianhua notify ROBAM and transfer such business opportunity
ion
to ROBAM; 3. The Company/I and other enterprises
under the control of the Company/me commit not to
provide technical information, process flow, marketing
channels or other trade secrets to other companies,
enterprises, organizations or individuals whose
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business constitutes competition with the business of
ROBAM.
Other
commitme
The cumulative profits distributed in cash for three Strict
nts made to Thre
Dividen consecutive years shall not be less than 40% of the April 10, perfo
minor Company e
d annual average distributable profits realized in the 2018 rman
shareholder years
three years. ce
s of the
Company
Whether
the
commitme
Yes
nt is
fulfilled on
time
2. In case the Company’s asset or project saw earning expectation, and the reporting period is still
covered by the term of the earning expectation, the Company shall make a statement about the asset or
project fulfilling the original expectation and the reasons thereof.
□ Applicable √ Not applicable
II. Non-operating occupation of Funds of Listed Companies by Controlling Shareholders
and Other Related Parties
□ Applicable √ Not applicable
No non-operating occupation of funds of listed companies by controlling shareholders and other related parties during the reporting
period.
III. Illegal External Guarantee
□ Applicable √ Not applicable
No illegal external guarantee of the Company during the reporting period.
IV. Statement of the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable √ Not applicable
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V. Statement of the Board of Directors, the Board of Supervisors and Independent Directors
(if any) on the "Non-standard Audit Report" of the Accounting Firm During the Reporting
Period
□ Applicable √ Not applicable
VI. Explanation of Changes in Accounting Policy and Accounting Estimates or Significant
Accounting Error Correction When Compared to the Financial Statements of the Previous
Year
√ Applicable □ Not applicable
Changes in significant accounting policies
Content and reasons of changes in accounting policies Approval procedures
On December 7, 2018, the Ministry of Finance issued the “Notice on Revising and Resolution of the 5th Meeting of
Issuing Accounting Standards for Enterprises No. 21 - Leases” (C.K. [2018] No. 35) the Fifth Board of Directors
(hereinafter referred to as the “new lease standards”). The Company has implemented the
new lease standards since January 1, 2021.
Adjustment of relevant items in financial statements at the beginning of the implementation year as a result of first implementation of
new lease standards from 2021
The Company has implemented the new lease standards since January 1, 2021. The retained earnings and other relevant items in the
financial statements at the beginning of the year in which the standards are first implemented shall be adjusted according to the
cumulative influence number during the first implementation of the standards, and the information of comparable periods shall not be
adjusted. For the operating lease before the first implementation date, the Company measures the lease liabilities at the present value
discounted by the lessee's incremental borrowing rate on the first implementation date according to the remaining lease payment on
the first implementation date, and makes necessary adjustments according to the amount equal to the lease liabilities and prepaid rent
for each lease. The affected report items and amounts are as follows:
Consolidated Balance Sheet
Item December 31, 2020 January 1, 2021 Adjusted figure
Right-of-use assets 15,374,577.46 15,374,577.46
Lease liabilities 14,705,038.35 14,705,038.35
Non-current liabilities due within a year 684,535.10 684,535.10
Notes to the adjustment of the consolidated balance sheet: the consolidated balance sheet increases the right-of-use assets by RMB
15,374,577.4, the lease liabilities by RMB 14,705,038.35 and the non-current liabilities due within a year by RMB 684,535.10.
Balance sheet of parent company
The implementation of the new lease standards has no impact on the parent company’s financial statements on January 1, 2021
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VII. Explanation of Changes in the Scope of Combined Financial Statements When
Compared with Financial Statements of the Previous Fiscal Year
□ Applicable √ Not applicable
No changes in the scope of combined financial statements in the reporting period.
VIII. Appointme nt of and Dismissal of Accounting Firms
Accounting firm currently appointed
Shinewing Certified Public Accountants (special general
Name of Chinese accounting firm
partnership)
Remuneration (10,000 yuan) 115
Term of audit services 3
CPAs Lei Yongxin, Wang Qing
Term of auditing services of CPAs 3
Has the accounting firm been changed within the reporting period?
□ Yes √ No
Employment of internal control audit accounting firm, financial advisor or sponsor
□ Applicable √ Not applicable
IX. Delisting Confronted upon Disclosure of the Annual Report
□ Applicable √ Not applicable
X. Bankruptcy Reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization of the Company during the reporting period.
XI. Major Litigation, Arbitration Matters
□ Applicable √ Not applicable
No major litigation or arbitration matters of the Company during the reporting period.
XII. Punishme nt and Rectification
□ Applicable √ Not applicable
No punishment or rectification of the Company during the reporting period.
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XIII. Credit Conditions of the company, Its Controlling Shareholders and Actual
Controllers
□ Applicable √ Not applicable
XIV. Major Related Transactions
1. Related transactions related to daily operation
□ Applicable √ Not applicable
No related transactions related to daily operation of the Company during the reporting period.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable √ Not applicable
No Related transactions arising from the acquisition or sale of assets or equity of the Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable √ Not applicable
No related transactions of joint foreign investment of the Company during the reporting period.
4. Related claims and debts
□ Applicable √ Not applicable
No related claims and debts of the Company during the reporting period.
5. Transactions with related financial companies
□ Applicable √ Not applicable
There is no deposit, loan, credit or other financial business between the Company and the related financial companies and the related
parties.
6. Transactions between the financial companies controlled by the Company and related parties
□ Applicable √ Not applicable
There is no deposit, loan, credit or other financial business between the financial companies controlled by the Company and the
related parties.
7. Other major related transactions
□ Applicable √ Not applicable
No other major related transactions of the Company during the reporting period.
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XV. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship of the Company during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No contracting of the Company during the reporting period.
(3) Lease
□ Applicable √ Not applicable
No lease of the Company during the reporting period.
2. Major guarantee
□ Applicable √ Not applicable
No major guarantee of the Company during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
√ Applicable □ Not applicable
Entrusted financing during the reporting period
Unit: 10,000 yuan
Overdue amount
of impairment
Source of funds for Amount incurred in Outstanding Overdue amount accrued for
Specific type
entrusted financing entrusted financing balance not recovered financial
management not
recovered
Bank financial
Owned fund 320,081.25 287,231.25 0 0
products
Total 320,081.25 287,231.25 0 0
Specific circumstance of high-risk entrusted financing with significant single amount or with low security and poor liquidity
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□ Applicable √ Not applicable
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
No entrusted loans of the Company during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
No other major contracts of the Company during the reporting period.
XVI. Description of Other Important Events
□ Applicable √ Not applicable
No other important events to be described during the reporting period.
XVII. Major Events of Subsidiaries
□ Applicable √ Not applicable
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Section 7 Changes in Shares and Shareholders
I. Change in Shares
1. Change in shares
Unit: share
Before this change Increase / decrease (+, -) After this change
Share capital
New issue of Share increase from
Quantity P roportion Other Subtotal Quantity P roportion
shares donation reserved
funds
I. Restricted shares 14,123,269 1.49% 14,123,269 1.49%
1. State shareholding
2. State legal person
shareholding
3. Other domestic
14,123,269 1.49% 14,123,269 1.49%
shareholding
Wherein: do mestic legal
person shareholding
Do mestic natural
14,123,269 1.49% 14,123,269 1.49%
person shareholding
4. Foreign shareholding
Wherein: foreign legal
person shareholding
Foreign natural
person shareholding
II. Unrestricted shares 934,900,781 98.51% 934,900,781 98.51%
1. RM B co mmon share 934,900,781 98.51% 934,900,781 98.51%
2. Foreign shares listed in
China
3. Foreign shares listed
abroad
4. Other
III. Total amount of shares 949,024,050 100.00% 949,024,050 100.00%
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Causes for change in shares
□ Applicable √ Not applicable
Approval of changes in shares
□ Applicable √ Not applicable
Transfer of share changes
□ Applicable √ Not applicable
Influence of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the Company
and other financial indexes in the most recent year and the most recent period
□ Applicable √ Not applicable
Other information the Company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
□ Applicable √ Not applicable
II. Securities Issuance and Listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable √ Not applicable
2. Description of changes in the total number of shares, shareholder structure, asset and liability structure
of the company
□ Applicable √ Not applicable
3. Existing internal employee shares
□ Applicable √ Not applicable
III. Shareholders and Actual Controllers
1. Number and shareholding of the company's shareholders
Unit: share
Total number of Total number of Total number of
Total number of
common preferred shareholders preferred
common
shareholders at with voting rights shareholders with
shareholders at 67,367 66,641 0 0
the end of the restored at the end of voting rights
the end of the
previous month the reporting period (if restored at the end
reporting period
before the any) (see Note 8) of the previous
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disclosure date of month before the
the annual report disclosure date of
the annual report
(if any) (see Note
8)
Shareholders holding more than 5% shares or top 10 shareholders
Number of Pledge, mark or freeze
Number of Increase or Number of
shares held
Sharehol shares held at decrease shares held
Shareholde with
Shareholder's name ding the end of the during the with limited
r nature unlimited Status of shares Quantity
ratio reporting reporting sales
sales
period period conditions
conditions
Domestic
Hangzhou ROBAM
non-state 471,510,00
Industrial Group 49.68% 471,510,000
legal 0
Co., Ltd.
person
Hong Kong Overseas
Securities Clearing legal 10.05% 95,329,926 -28,899,585 95,329,926
Company Limited person
Domestic
Shen Guoying natural 1.29% 12,240,000 12,240,000
person
Industrial Bank Co.,
Ltd.－ ICBC Credit
Suisse Culture &
Other 0.77% 7,348,519 7,348,519 7,348,519
Sports Industry
Stock Securities
Investment Fund
Domestic
Hangzhou
non-state
Jinchuang 0.70% 6,640,085 -2,811,900 6,640,085
legal
Investment Co., Ltd.
person
Domestic
Hangzhou
non-state
Yinchuang 0.67% 6,318,000 6,318,000
legal
Investment Co., Ltd.
person
Domestic
Ren Jianhua natural 0.62% 5,923,150 4,442,362 1,480,788
person
Noregs Bank - Overseas 0.60% 5,710,255 -3,729,960 5,710,255
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Owned fund legal
person
Industrial and
Commercial Bank
of China Limited－
Penghua selects Other 0.59% 5,618,541 5,618,541 5,618,541
hybrid securities
investment funds
with ingenuity
TEMASEK Overseas
FULLERTON legal 0.56% 5,344,855 -5,116,691 5,344,855
ALPHA PTE LTD person
Description of the above-mentioned The actual controller of the Company’s controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and
shareholder association or the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder
concerted action Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison.
Description of the above
shareholders involved in entrusting
N/A
/ entrusted voting right and waiver
of voting right
Shareholding of top 10 shareholders with unlimited sales conditions
Number of shares with unlimited sales conditions held at the end of the Share type
Shareholder's name
reporting period Share type Quantity
Hangzhou ROBAM Industrial RMB common
471,510,000 471,510,000
Group Co., Ltd. share
Hong Kong Securities Clearing RMB common
95,329,926 95,329,926
Company Limited share
RMB common
Shen Guoying 12,240,000 12,240,000
share
Industrial Bank Co., Ltd.－ ICBC
Credit Suisse Culture & Sports RMB common
7,348,519 7,348,519
Industry Stock Securities share
Investment Fund
Hangzhou Jinchuang Investment RMB common
6,640,085 6,640,085
Co., Ltd. share
Hangzhou Yinchuang Investment RMB common
6,318,000 6,318,000
Co., Ltd. share
RMB common
Noregs Bank - Owned fund 5,710,255 5,710,255
share
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Industrial and Commercial Bank of
China Limited － Penghua selects RMB common
5,618,541 5,618,541
hybrid securities investment funds share
with ingenuity
TEMASEK FULLERTON ALPHA RMB common
5,344,855 5,344,855
PTE LTD share
China Merchants Bank Co. Ltd.－
ICBC Credit Suisse Yuanxing RMB common
5,000,000 5,000,000
Hybrid Securities Investment Fund share
Description of the association or
concerted action between top 10
public shareholders with unlimited The actual controller of the Company’s controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and
sales conditions, and between top the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder
10 public shareholders with Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison.
unlimited sales conditions and top
10 shareholders
Securities margin trading business
attended by top 10 ordinary N/A
shareholders (if any) (see note 4)
Whether the Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions agreed on a
repurchase transaction during the reporting period
□ Yes √ No
The Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on a
repurchase transaction during the reporting period
2. Controlling shareholders of the company
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Legal
Controlling shareholder's Date of
Representative / Organization code Main business
name establishment
Head of Unit
Industrial investment,
Hangzhou ROBAM
Ren Jianhua March 22, 1995 14384025-0 import and export of
Industrial Group Co., Ltd.
goods
Equity of other domestic
and foreign listed Directly holding 55.76% of the equity of Hangzhou N bond Nonwoven Co., Ltd. (603238), it is its
companies controlle d and controlling shareholder.
participated by controlling
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shareholders during the
reporting period
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
No change in controlling shareholders during the reporting period.
3. Actual controller of the company and person acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Relationship with Whether to obtain the right of residence in
Actual controller’s name Nationality
actual controller other countries or regions
Ren Jianhua Self Chinese No
Chairman and secretary of the party committee of ROBAM Group, chairman of ROBAM
Main occupations and positions Appliances, chairman of Hangzhou Nbond Nonwoven Co., Ltd., and chairman of
Hangzhou Amblem Kitchenware Co., Ltd.
Domestic and foreign listed
companies that have held shares in Actual controllers of ROBAM 002508 and Nbond 603238
the past 10 years
Changes in actual controller during the reporting period
□ Applicable √ Not applicable
No change in actual controller during the reporting period.
Block diagram of property right and control relationship between the Company and actual controller
Ren Jianhua
ROBAM Group Jinchuang
Investment
Hangzhou ROBAM Appliances Co., Ltd.
The actual controller controls the Company through trust or other asset management methods
□ Applicable √ Not applicable
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4. The cumulative number of pledged shares of the Company's controlling shareholder or the largest
shareholder and its persons acting in concert accounts for 80% of the Company's shares held by them
□ Applicable √ Not applicable
5. Other legal person shareholders holding more than 10%
□ Applicable √ Not applicable
6. Restricted share reduction of controlling shareholders, actual controller, reorganizers and other
commitment subjects
□ Applicable √ Not applicable
IV. Specific Imple mentation of Share Repurchase in the Reporting Period
Implementation progress of share repurchase
√ Applicable □ Not applicable
Proportion of
number of
shares
repurchased
Number of
Proposal Number of Proportion in Proposed Proposed in the
Repurchase shares
disclosure shares to be total share repurchase repurchase underlying
purpose repurchased
time repurchased capital amount period shares
(share)
involved in
the equity
incentive
plan (if any)
Within 12
months from
the date
To
when the
implement
general
About RMB 150 the
April 15, 3 - 4 million meeting of
0.3161% - million - 200 Company’s 4,929,134
2021 shares shareholders
0.4215% million equity
deliberates
incentive
and adopts
plan
the share
repurchase
plan
Implementation progress of reducing repurchased shares by centralized competitive bidding
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□ Applicable √ Not applicable
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Section 8 Preferred Shares
□ Applicable √ Not applicable
No preferred shares of the Company during the reporting period.
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Section 9 Corporate Bonds
□ Applicable √ Not applicable
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Section 10 Financial Report
I. Audit Report
Type of audit opinion Standard unqualified opinion
Date of signing of audit report April 19, 2022
Shinewing Certified Public Accountants (special general
Name of audit institution
partnership)
Audit Report No. XYZH/2022BJAA100465
Name of Certified Public Accountant Lei Yongxin, Wang Qing
Main body of audit report
I. Audit opinion
We have audited the accompanying financial statements of Hangzhou ROBAM Appliances Co., Ltd. (hereinafter referred to as
Robam), including the consolidated balance sheet and the balance sheet of parent company as of December 31, 2021, consolidated
income statement and income statement of parent company, consolidated cash flow statement and cash flow statement of parent
company, consolidated statement of change in equity and statement of change in equity of parent company for the year 2021 and
notes to relevant financial statements.
In our opinion, the attached financial statements of your company have been prepared in accordance with the provisions of the
Accounting Standards for Business Enterprises and give a true and fair view of the consolidated financial position and f inancial
position of parent company of ROBAM as of December 31, 2021 and of the financial performance and cash flows for the year 2021
in all significant terms.
II. Basis for audit opinion
We conducted our audit in accordance with the Standards on Auditing for Certified Public Accountants. The “responsibility of
certified public accountants for audit of financial statements” in the audit report further expounds our responsibilities under such
standards. We were independent of ROBAM and fulfill other responsibilities in terms of professional ethics according to the code of
professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
III. Key audit items
The key audit items are those that we consider most important to audit the financial statements of the current period in our
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professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation of
an audit opinion. We do not comment on these items separately. We have identified the following items as key audit items to be
communicated in the audit report.
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1. Revenue recognition - agency model and engineering channels
Key audit items Response in audit
Refer to Notes to financial statements IV. 33 and For the income recognition of the agency mode and engineering channels,
VI. 37 Operating income and operating cost. the audit procedures we implemented mainly include:
In 2021, the operating income of ROBAM was 1. Understand key internal controls related to income recognition,
10,147,706,000 yuan, an increase of evaluate and test the effectiveness of internal control design and
2,019,085,200 yuan compared with that in 2020, implementation;
including the agency mode income of 2. Check the information of the shareholders and main personnel of the
3,070,368,000 yuan and the engineering channel agency company and evaluate whether there is any correlation;
income of 1,976,492,300 yuan, accounting for 3. Evaluate whether the income recognition method and recognition time
49.73% of revenue of the period. point comply with the relevant provisions of the Accounting Standards for
Since the agency mode income and engineering Business Enterprises in combination with the contract terms and business
channel income account for large proportion in nature and the terms related to the time point of commodity control transfer;
the operating income and are one of the key 4. Carry out substantive analysis procedures on operating income and
performance indicators of ROBAM, there may be gross margin ratio by channels, customers, products, etc., identify whether
an inherent risk that the management may there are significant or abnormal fluctuations, and analyze the causes of
recognize the income in the wrong way to reach fluctuations;
the specific goa l or expected goal. Therefore, we
5. Check the original documents of the income recognition for major
regard income recognition as a key audit issue.
customers according to the income recognition policy and settlement
process and evaluate the authenticity and accuracy of operating income
recognition;
6. Confirm current sales to main customers by sampling combined with
the confirmation of accounts receivable;
7. Carry out the cut-off test procedure of income, check the supporting
documents such as outbound delivery order and acceptance certificate for
the operating income recognized before and after the balance sheet date, and
evaluate whether the operating income is recognized within an appropriate
period;
8. Check whether the information relating to operating income has been
properly presented and disclosed in the financial statements.
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2. Impairment of notes receivable and accounts receivable
Key audit items Response in audit
Refer to Notes to financial statements IV. 11.12, For the impairment of notes receivable and accounts receivable, the audit
VI. 3 Notes receivable and VI. 4 Accounts procedures we implemented mainly include:
receivable. 1. Understand key internal controls for notes receivable and accounts
As of December 31, 2021, the balance of notes receivable of ROBAM, evaluate and test the effectiveness of internal control
receivable of ROBAM was 1,576,482,600 yuan design and implementation;
and the provision for bad debt was 246,288,700 2. Check the contracts of main customers according to the income status,
yuan; the balance of accounts receivable was understand the settlement terms, pay attention to the customers who have not
2,247,422,200 yuan, and the provision f or bad made payment after the settlement credit period or acceptance period, and
debt was 649,729,300 yuan. analyze the reasons. Judge the solvency of customers by understanding their
Due to the large amount of notes receivable and operating and financial conditions;
accounts receivable at the end of the period, the 3. Analyze the implementation of the new financial instrument standards
management needs to use material accounting for receivables, including the rationality of determination and estimation of
estimate and judgment when determining the the expected credit loss model for the receivables of ROBAM, calculate the
recoverable amount, so we regard the impairment expected credit loss amount on the balance sheet date, and analyze whether
of notes receivable and accounts receivable as the the credit loss is fully accounted for in the receivables period;
key audit items. 4. Verify the rationality of expected credit loss of receivables combined
with the receivables confirmation procedure and post-dated collection by
analyzing the aging of accounts receivable;
5. Carry out supervision procedures, check the balance of notes
receivable at the end of the period, and check the current endorsement and
discount status to check whether they conform to the derecognition
conditions;
6. Check the post-dated acceptance status of notes receivable from main
customers, record the amount of notes receivable collected after the
post-dated period, and check the supporting documents, such as bank receipt
and other vouchers, for those with large amounts of notes receivable;
7. Check whether the information relating to notes receivable and
accounts receivable has been properly presented and disclosed in the
financial statements.
IV. Other information
The management of ROBAM (hereinafter referred to as the management) is responsible for other information, including the
information covered in ROBAM annual report for 2021, but excluding the financial statements and our audit report.
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Our audit opinion on the financial statements does not cover other information and we does not express any form of verification
conclusions on other information.
Combined with our audit of the financial statements, it’s our responsibility to read other information. In this process, we shall
consider whether material inconsistency or material misstatement of other information with the financial stateme nts or the situation
understood by us in the audit process.
Based on the work that has been executed by us, we should report the fact of material misstatement confirmed in other information.
We have nothing to report in this regard.
V. Responsibility of management and government for the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of the Accounting Standards
for Business Enterprises and giving a true and fair view; designing, implementing and maintaining necessary internal control, so that
the financial statements are free from material misstatement, whether due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going-concern ability of ROBAM,
disclosing the matters related to the going-concern (if applicable) and using the going-concern assumption, unless the management
plans to liquidate ROBAM or stop operation or no other realistic options.
The government is responsible for supervising the financial reporting process of ROBAM.
VI. Responsibility of certified public accountants for audit of financial statements
Our goal is to obtain reasonable guarantee on inexistence of the material misstatement of the financial statements whether due to
fraud or error and to issue an audit report including audit opinion. Reasonable guarantee is high level guarantee, but it cannot
guarantee that a material misstatement of the audit executed according to the auditing standards will always be foun d. Misstatement
may be caused by fraud or error. If the reasonable expected misstatements may affect the economic decision made by the financial
statement user according to the financial statements, whether individually or collectively, the misstatement is generally believed
material.
We made professional judgment and maintained professional skepticism in the audit process accord ing to the auditing standards. We
also performed the following:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
implement audit procedures to address these risks, and obtain suff icient and appropriate audit evidence as the basis for audit opinion.
Since the fraud may involve collusion, forge, intentional omission, false statement or above internal control, the risk of material
misstatement caused by fraud is higher than that caused by error.
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(2) Understand internal control related to the audit in order to design audit procedures that are appropriate in the circu mstances, but
not for the purpose of expressing an opinion on the effectiveness of the internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relevant
disclosure.
(4) Draw a conclusion about the appropriateness of the going-concern assumption used by the management. Meanwhile, draw a
conclusion about the major uncertainty of the matters or circumstances possibly resulting in major concerns about the going-concern
ability of ROBAM according to the audit evidence obtained. If we draw a conclusion that major uncertainty exists, the auditing
standards require us to request the statement user to notice relevant disclosure in the financial statements in the audit report; in case
of insufficient disclosure, we should issue a modified audit report. Our conclusion is made on the basis of the information available
as of the audit report date. However, the future matters or circumstances may result in going concern failure of ROBAM.
(5) Evaluate the overall presentation, structure and content of the financial statements and evaluate whether the financial
statements give a true and fair view of relevant transactions and matters.
(6) Obtain adequate and appropriate audit evidence for the financial information of ROBAM entity or business activities to express
an opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit and take full
responsibility for the audit opinions.
We communicate with the governance on the planned audit scope, time arrangement and major audit findings, including the internal
control defects identified by us in the audit and worthing attention.
We also provide the governance with a statement of compliance with the ethical requirements relating to our independence and
communicate with the governance with respect to all relations and other matters that may reasonably be considered to affect our
independence and the relevant precautions (if applicable).
From the items communicated with the governance, we determine which items are most important to the audit of current financial
statements and thus constitute the key audit items. We describe these items in our audit report, unless the disclosure of these matters
is prohibited by law or regulation, or, in rare circumstances, we determine that we should not communicate the items in our audit
report if it is reasonably expected that the negative consequences of communicating an item outweigh the benefits in the public
interest.
II. Financial Statements
Unit of statements in financial notes: CNY
1. Consolidated balance sheet
Unit: Hangzhou ROBAM Appliances Co., Ltd.
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December 31, 2021
Unit: yuan
Item December 31, 2021 December 31, 2020
Current assets:
Monetary capital 3,802,201,346.55 3,921,052,700.31
Deposit reservation for balance
Lending funds
Trading financial assets 2,872,312,500.00 2,352,000,000.00
Derivative financial assets
Notes receivable 1,330,193,894.82 1,832,701,443.08
Accounts receivable 1,597,692,860.90 1,008,235,946.40
Receivables financing
Advances to suppliers 131,162,030.95 69,889,399.47
Premiums receivables
Reinsurance accounts receivable
Provision of cession receivable
Other receivables 73,487,381.46 56,589,791.38
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for
sale
Inventory 1,772,231,632.25 1,386,089,344.84
Contract assets
Assets held for sales
Non-current assets due within a
year
Other current assets 4,110,429.16 667,378.56
Total current assets 11,583,392,076.09 10,627,226,004.04
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 5,405,129.91 3,452,769.59
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Other equity instrument
2,116,023.22 102,116,023.22
investments
Other non-current financial assets
Investment properties 11,085,896.07 2,591,001.84
Fixed assets 1,179,306,020.01 824,978,354.71
Construction in progress 454,643,364.82 463,424,647.46
Productive biological assets
Oil and gas assets
Right-of-use assets 29,902,954.22
Intangible assets 229,391,803.26 235,217,240.32
Development expenditure
Goodwill 80,589,565.84 80,589,565.84
Long-term unamortized expenses 5,385,436.20 1,798,358.85
Deferred income tax assets 286,348,037.04 112,492,030.71
Other non-current assets 38,468,874.44 3,682,279.67
Total non-current assets 2,322,643,105.03 1,830,342,272.21
Total assets 13,906,035,181.12 12,457,568,276.25
Current liabilities:
Short-term borrowing 29,616,655.41 6,076,177.30
Borrowings from central bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 962,665,463.99 751,802,498.92
Accounts payable 2,181,900,261.00 1,723,832,208.09
Advance from customers
Contract liabilities 1,026,782,402.35 949,591,228.35
Financial assets sold for
repurchase
Deposits from customers and
interbank
Acting trading securities
Acting underwriting securities
Payroll payable 165,177,425.08 126,130,391.24
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Tax payable 212,202,393.54 181,887,237.51
Other payables 267,781,215.06 242,559,615.30
Including: Interest payable
Dividends payable
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sales
Non-current liabilities due within
5,387,591.43
a year
Other current liabilities 124,284,081.56 126,535,407.26
Total current liabilities 4,975,797,489.42 4,108,414,763.97
Non-current liabilities:
Reserve fund for insurance
contracts
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities 26,177,034.29
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 131,747,378.42 150,163,523.90
Deferred income tax liabilities 6,254,762.76 5,210,759.74
Other non-current liabilities
Total non-current liabilities 164,179,175.47 155,374,283.64
Total liabilities 5,139,976,664.89 4,263,789,047.61
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 404,918,098.15 401,799,332.67
Minus: treasury stock 199,995,742.59
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Other comprehensive income -100,157,634.16 -15,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
General risk preparation
Undistributed profit 7,098,721,555.37 6,240,444,654.34
Total owners' equities attributable to
8,627,026,739.27 8,050,626,815.35
the owners of parent company
Minority equity 139,031,776.96 143,152,413.29
Total owners' equities 8,766,058,516.23 8,193,779,228.64
Total liabilities and owners' equities 13,906,035,181.12 12,457,568,276.25
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of
accounting body: Zhang Guofu
2. Balance sheet of parent company
Unit: yuan
Item December 31, 2021 December 31, 2020
Current assets:
Monetary capital 3,554,239,202.02 3,660,573,828.66
Trading financial assets 2,800,000,000.00 2,260,000,000.00
Derivative financial assets
Notes receivable 1,327,893,894.82 1,826,318,388.55
Accounts receivable 1,496,691,827.59 933,609,909.29
Receivables financing
Advances to suppliers 108,926,615.26 54,046,490.84
Other receivables 66,149,239.78 49,092,820.31
Including: Interest receivable
Dividends receivable
Inventory 1,674,764,364.28 1,310,365,800.56
Contract assets
Assets held for sales
Non-current assets due within a
year
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Other current assets
Total current assets 11,028,665,143.75 10,094,007,238.21
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 242,037,500.08 229,958,703.32
Other equity instrument
2,116,023.22 102,116,023.22
investments
Other non-current financial assets
Investment properties 11,361,192.77 2,890,836.38
Fixed assets 1,114,958,987.32 798,041,764.29
Construction in progress 280,105,490.57 388,628,789.02
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 152,123,403.04 153,598,124.59
Development expenditure
Goodwill
Long-term unamortized expenses 1,653,433.47 1,626,828.83
Deferred income tax assets 285,017,337.53 110,283,291.78
Other non-current assets 36,602,077.16 3,005,279.67
Total non-current assets 2,125,975,445.16 1,790,149,641.10
Total assets 13,154,640,588.91 11,884,156,879.31
Current liabilities:
Short-term borrowing 29,616,655.41 6,076,177.30
Trading financial liabilities
Derivative financial liabilities
Notes payable 869,702,988.97 706,096,531.24
Accounts payable 2,051,194,342.69 1,643,087,806.83
Advance from customers
Contract liabilities 923,802,307.69 863,047,926.93
Payroll payable 129,893,906.19 102,753,699.88
Tax payable 196,058,797.24 170,747,570.08
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Other payables 240,983,242.45 225,015,032.38
Including: Interest payable
Dividends payable
Liabilities held for sales
Non-current liabilities due within
a year
Other current liabilities 110,927,917.94 115,284,778.08
Total current liabilities 4,552,180,158.58 3,832,109,522.72
Non-current liabilities:
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 102,890,393.42 121,306,538.90
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 102,890,393.42 121,306,538.90
Total liabilities 4,655,070,552.00 3,953,416,061.62
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 404,873,115.14 401,754,349.66
Minus: treasury stock 199,995,742.59
Other comprehensive income -100,157,634.16 -15,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
Undistributed profit 6,971,309,836.02 6,120,603,639.69
Total owners' equities 8,499,570,036.91 7,930,740,817.69
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Total liabilities and owners' equities 13,154,640,588.91 11,884,156,879.31
3. Consolidated Statement of Income
Unit: yuan
Item Year 2021 Year 2020
I. Total operating income 10,147,706,035.35 8,128,620,799.31
Including: Operating income 10,147,706,035.35 8,128,620,799.31
Interest revenue
Premium earned
Fee and commission income
II. Total operating costs 7,960,178,225.56 6,222,313,742.92
Including: Operating costs 4,835,053,404.37 3,563,206,930.87
Interest expenditure
Fee and commission expense
Surrender value
Net payments for insurance claims
Net reserve fund extracted for
insurance contracts
Bond insurance expense
Reinsurance costs
Taxes and surcharges 80,591,250.17 61,956,630.88
Selling expenses 2,454,418,039.92 2,146,965,048.87
Management costs 363,762,372.63 296,985,763.24
Research and development expenses 366,026,666.34 303,347,555.81
Financial expenses -139,673,507.87 -150,148,186.75
Including: interest expenditure 9,638,311.28 6,721,543.47
Interest revenue 152,136,833.79 160,282,611.34
Plus: other incomes 77,424,555.44 92,182,244.92
Income from investment (loss expressed
90,502,532.06 39,488,969.96
with “-”)
Including: Income from investment of
-47,639.68 -715,569.20
joint venture and cooperative enterprise
Income from derecognition of
financial assets measured at
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amortized cost
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss
expressed with “-”)
Income from fair value changes (loss
expressed with “-”)
Credit impairment losses (loss expressed
-765,499,437.07 -64,138,118.53
with “-”)
Assets impairment losses (loss expressed
-52,632,725.80 -21,977,893.76
with “-”)
Income from disposal of assets (loss
-2,122,173.87 -387,844.96
expressed with “-”)
III. Operating profits (loss expressed with “-”) 1,535,200,560.55 1,951,474,414.02
Plus: Non-operating income 1,779,825.86 1,084,379.00
Less: non-operating expenditure 4,211,465.75 3,953,245.34
IV. Total profits (total loss expressed with “-”) 1,532,768,920.66 1,948,605,547.68
Less: Income tax expenses 183,977,497.96 261,247,643.74
V. Net profits (net loss expressed with “-”) 1,348,791,422.70 1,687,357,903.94
(I) Classified by business continuity
1. Net profits from going concern (net loss
1,348,791,422.70 1,687,357,903.94
expressed with “-”)
2. Net profits from discontinuing operation
(net loss expressed with “-”)
(II) Classified by ownership
1. Net profits attributable to shareholders of
1,331,712,059.03 1,660,749,958.89
parent company
2. * Minority interest income 17,079,363.67 26,607,945.05
VI. Net of tax of other comprehensive income -85,000,000.00
Net amount of other comprehensive income after
-85,000,000.00
tax attributed to parent company owners
(I) Other comprehensive income that can't be
-85,000,000.00
reclassified into profit and loss
1. Remeasure the variation of net
indebtedness or net asset of defined
benefit plan
2. Other comprehensive income that
can't be reclassified into profit and
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loss in the invested enterprise
under equity method
3. Fair value change of other equity
-85,000,000.00
instrument investments
4. Fair value change of enterprise
credit risks
5. Other
(II) Other comprehensive income that will be
reclassified into profit and loss
1. Other comprehensive income that
will be reclassified into profit and
loss in the invested enterprise
under equity method
2. Fair value change of other debt
investments
3. Amount of financial assets
reclassified into other
comprehensive income
4. Provision for credit impairment of
other debt investments
5. Cash flow hedging reserve
6. Balance arising from the
translation of foreign currency
financial statements
7. Other
Net amount of other comprehensive income after
tax attributed to minority shareholders
VII. Total comprehensive income 1,263,791,422.70 1,687,357,903.94
Total comprehensive income attributed to
1,246,712,059.03 1,660,749,958.89
parent company owners
Total comprehensive income belonging to
17,079,363.67 26,607,945.05
minority shareholders
VIII. Earnings per share:
(I) Basic EPS 1.41 1.75
(II) Diluted EPS 1.41 1.75
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
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4. Income statement of parent company
Unit: yuan
Item Year 2021 Year 2020
I. Operating income 9,284,231,145.49 7,530,428,964.96
Subtract: Operating costs 4,557,542,158.07 3,375,484,733.03
Taxes and surcharges 73,299,717.92 56,158,201.66
Selling expenses 2,044,292,085.93 1,883,064,814.48
Management costs 261,914,391.23 216,279,202.32
Research and development expenses 349,772,824.04 290,347,551.69
Financial expenses -137,078,786.08 -146,412,372.62
Including: interest expenditure 7,860,839.16 6,721,543.47
Interest revenue 146,898,250.58 155,949,366.04
Plus: other incomes 71,947,430.91 85,947,189.06
Income from investment (loss expressed
109,604,014.60 32,129,921.37
with “-”)
Including: Income from investment of
-47,639.68 -715,569.20
joint venture and cooperative enterprise
Income from derecognition of financial
assets measured at amortized cost (loss
expressed with “-”)
Net exposure hedging gain (loss
expressed with “-”)
Income from fair value changes (loss
expressed with “-”)
Credit impairment losses (loss expressed
-765,307,835.18 -58,992,629.71
with “-”)
Assets impairment losses (loss expressed
-52,632,725.80 -21,977,893.76
with “-”)
Income from disposal of assets (loss
-2,281,424.63 -585,889.07
expressed with “-”)
II. Operating profits (loss expressed with “-”) 1,495,818,214.28 1,892,027,532.29
Plus: Non-operating income 1,323,613.73 858,846.38
Less: non-operating expenditure 2,551,970.49 2,997,945.29
III. Total profits (total loss expressed with “-”) 1,494,589,857.52 1,889,888,433.38
Less: Income tax expenses 170,448,503.19 249,881,791.55
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IV. Net profits (net loss expressed with “-”) 1,324,141,354.33 1,640,006,641.83
(I) Net profits from going concern (net loss
1,324,141,354.33 1,640,006,641.83
expressed with “-”)
(II) Net profits from discontinuing operation
(net loss expressed with “-”)
V. Net of tax of other comprehensive income -85,000,000.00
(I) Other comprehensive income that can't be
-85,000,000.00
reclassified into profit and loss
1. Remeasure the variation of net
indebtedness or net asset of
defined benefit plan
2. Other comprehensive income that
can't be reclassified into profit
and loss in the invested enterprise
under equity method
3. Fair value change of other equity
-85,000,000.00
instrument investments
4. Fair value change of enterprise
credit risks
5. Other
(II) Other comprehensive income that will be
reclassified into profit and loss
1. Other comprehensive income that
will be reclassified into profit and
loss in the invested enterprise
under equity method
2. Fair value change of other debt
investments
3. Amount of financial assets
reclassified into other
comprehensive income
4. Provision for credit impairment of
other debt investments
5. Cash flow hedging reserve
6. Balance arising from the
translation of foreign currency
financial statements
7. Other
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VI. Total comprehensive income 1,239,141,354.33 1,640,006,641.83
VII. Earnings per share:
(I) Basic EPS
(II) Diluted EPS
5. Consolidated statement of cash flow
Unit: yuan
Item Year 2021 Year 2020
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 10,288,453,339.62 8,100,485,159.16
Net increase of customer deposit and deposit
from other banks
Net increase of borrowings from central bank
Net increase of borrowing funds from other
financial institutions
Cash from obtaining original insurance contract
premium
Cash received from insurance premium of
original insurance contract
Net increase of deposit and investment of
insured
Cash from interest, handling charges and
commissions
Net increase of borrowing funds
Net increase of repurchase of business funds
Net cash from acting trading securities
Refund of tax and levies 10,979,888.36
Other cash received related to operating
271,671,026.74 298,798,845.98
activities
Subtotal cash inflows from operating activities 10,571,104,254.72 8,399,284,005.14
Cash paid for selling commodities or offering
5,176,102,168.67 3,532,083,383.04
labor
Net increase of customer loans and advances
Net increase of amount due from central bank
and interbank
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Cash paid for original insurance contract claims
payment
Net increase of lending funds
Cash paid for interest, handling charges and
commissions
Cash paid for policy dividend
Cash paid to and for employees 916,057,162.36 802,932,443.05
Taxes and fees paid 931,911,190.31 781,667,958.02
Other cash paid related to operating activities 2,181,656,514.05 1,745,300,262.32
Subtotal cash outflows from operating activities 9,205,727,035.39 6,861,984,046.43
Net cash flow from operating activities 1,365,377,219.33 1,537,299,958.71
II. Cash flow from investment activities:
Cash from investment withdrawal 2,680,500,000.00 1,593,000,000.00
Cash from investment income 91,763,782.62 55,973,702.31
Net cash from disposal of fixed assets,
2,730,070.90 644,585.13
intangible assets and other long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Other cash received related to investment
activities
Subtotal cash inflows from investment activities 2,774,993,853.52 1,649,618,287.44
Cash paid for the purchase and construction of
fixed assets, intangible assets and other long 432,870,305.12 282,289,864.56
term assets
Cash paid for investment 3,202,812,500.00 2,585,000,000.00
Net cash received from reinsurance business
Net cash paid for obtaining subsidiaries and
other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 3,635,682,805.12 2,867,289,864.56
Net cash flow from investment activities -860,688,951.60 -1,217,671,577.12
III. Cash flow from financing activities:
Receipts from equity securities 850,000.00 6,650,000.00
Including: Cash received from subsidies’
850,000.00 6,650,000.00
absorption of minority shareholders’ investment
Cash received from borrowings
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Other cash received related to financing
30,694,588.74 6,076,177.30
activities
Subtotal cash inflows from financing activities 31,544,588.74 12,726,177.30
Cash repayments of amounts borrowed
Cash paid for distribution of dividends or profits
495,485,158.00 474,512,025.00
and for interest expenses
Including: Dividends and profits paid by
22,050,000.00
subsidiaries to minority shareholders
Other cash paid related to financing activities 206,042,180.97
Subtotal cash outflows from financing activities 701,527,338.97 474,512,025.00
Net cash flow from financing activities -669,982,750.23 -461,785,847.70
IV. Impact of exchange rate movements on cash and
-813,210.71 -1,042,285.83
cash equivalents
V. Net increase of cash and cash equivalents -166,107,693.21 -143,199,751.94
Plus: Balance of cash and cash equivalents at the
3,886,096,513.56 4,029,296,265.50
beginning of the period
VI. Balance of cash and cash equivalents at the
3,719,988,820.35 3,886,096,513.56
beginning of the period
6. Cash flow statement of parent company
Unit: yuan
Item Year 2021 Year 2020
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 9,400,393,477.64 7,509,377,698.55
Refund of tax and levies 10,979,888.36
Other cash received related to operating
230,569,238.02 251,289,264.69
activities
Subtotal cash inflows from operating activities 9,641,942,604.02 7,760,666,963.24
Cash paid for selling commodities or offering
4,977,299,230.52 3,394,399,263.08
labor
Cash paid to and for employees 674,644,809.06 610,750,252.22
Taxes and fees paid 863,049,900.49 727,573,489.15
Other cash paid related to operating activities 1,854,214,173.41 1,565,516,700.37
Subtotal cash outflows from operating activities 8,369,208,113.48 6,298,239,704.82
Net cash flow from operating activities 1,272,734,490.54 1,462,427,258.42
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II. Cash flow from investment activities:
Cash from investment withdrawal 2,260,000,000.00 1,100,000,000.00
Cash from investment income 110,584,544.21 48,392,109.16
Net cash from disposal of fixed assets,
2,295,850.90 208,339.13
intangible assets and other long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Other cash received related to investment
activities
Subtotal cash inflows from investment activities 2,372,880,395.11 1,148,600,448.29
Cash paid for the purchase and construction of
fixed assets, intangible assets and other long 312,910,594.46 205,445,153.06
term assets
Cash paid for investment 2,812,000,000.00 2,260,000,000.00
Net cash paid for obtaining subsidiaries and
other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 3,124,910,594.46 2,465,445,153.06
Net cash flow from investment activities -752,030,199.35 -1,316,844,704.77
III. Cash flow from financing activities:
Receipts from equity securities
Cash received from borrowings
Other cash received related to financing
30,694,588.74 6,076,177.30
activities
Subtotal cash inflows from financing activities 30,694,588.74 6,076,177.30
Cash repayments of amounts borrowed
Cash paid for distribution of dividends or profits
473,435,158.00 474,512,025.00
and for interest expenses
Other cash paid related to financing activities 199,995,742.59
Subtotal cash outflows from financing activities 673,430,900.59 474,512,025.00
Net cash flow from financing activities -642,736,311.85 -468,435,847.70
IV. Impact of exchange rate movements on cash and
-812,928.86 -1,042,359.16
cash equivalents
V. Net increase of cash and cash equivalents -122,844,949.52 -323,895,653.21
Plus: Balance of cash and cash equivalents at the
3,627,178,859.95 3,951,074,513.16
beginning of the period
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VI. Balance of cash and cash equivalents at the
3,504,333,910.43 3,627,178,859.95
beginning of the period
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7. Consolidated statement of change in equity
Current amount
Year 2021
Owners' equities attributable to the owners of parent company
Item Other equity instruments Minority Total owners'
Other General
Minus: Special Surplus Undistributed
Capital stock Capital reserve comprehensive risk Other Subtotal equity equities
P referred P erpetual
Other treasury stock reserve reserves profit
stock bond income preparation
I. Ending balance in previous
949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 6,240,444,654.34 8,050,626,815.35 143,152,413.29 8,193,779,228.64
year
P lus: Changes in accounting
policies
P rior period error
correction
Business combination
under common control
Other
II. Beginning balance in current
949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 6,240,444,654.34 8,050,626,815.35 143,152,413.29 8,193,779,228.64
year
III. Increase/decrease in the
current period (less to be filled 3,118,765.48 199,995,742.59 -85,000,000.00 858,276,901.03 576,399,923.92 -4,120,636.33 572,279,287.59
out with the minus sign "-")
(I) Total comprehensive income -85,000,000.00 1,331,712,059.03 1,246,712,059.03 17,079,363.67 1,263,791,422.70
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(II) Owner’s invested and
3,118,765.48 199,995,742.59 -196,876,977.11 850,000.00 -196,026,977.11
decreased capital
1. Common stock invested by the
850,000.00 850,000.00
owner
2. Capital invested by other
equity instrument holders
3. Amount of share-based
payment included in the 3,118,765.48 199,995,742.59 -196,876,977.11 -196,876,977.11
owner’s equity
4. Other
(III) P rofit distribution -473,435,158.00 -473,435,158.00 -22,050,000.00 -495,485,158.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
preparation
3. Distribution of owners (or
-473,435,158.00 -473,435,158.00 -22,050,000.00 -495,485,158.00
shareholders)
4. Other
(IV) Internal transfer of owner’s
equity
1. Capital surplus transfer to
paid-in capital (or capital
stock)
2. Earned surplus transfer to
paid-in capital (or capital
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stock)
3. Earned surplus covering the
deficit
4. Carryforward retained
earnings in variation of
defined benefit plan
5. Carryforward retained
earnings of other
comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
IV. Balance at the end of
949,024,050.00 404,918,098.15 199,995,742.59 -100,157,634.16 474,516,412.50 7,098,721,555.37 8,627,026,739.27 139,031,776.96 8,766,058,516.23
current period
Unit: yuan
Last term amount
Unit: yuan
2020
Owners' equities attributable to the owners of parent company
Item Other equity instruments Minority Total owners'
Minus: Other Specia General
Surplus Undistributed Othe
Capital stock Capital reserve treasur comprehensiv l risk Subtotal equity equities
Preferre Perpetua Othe
reserves profit r
d stock l bond r y stock e income reserv preparatio
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e n
I. Ending balance in 949,024,050.0 401,799,332.6 -15,157,634.1 474,516,412.5 5,054,206,720.4 6,864,388,881.4 109,894,468.2 6,974,283,349.7
previous year 0 7 6 0 5 6 4 0
Plus: Changes in
accounting policies
Prior period
error correction
Business
combination
under common
control
Other
II. Beginning balance 949,024,050.0 401,799,332.6 -15,157,634.1 474,516,412.5 5,054,206,720.4 6,864,388,881.4 109,894,468.2 6,974,283,349.7
in current year 0 7 6 0 5 6 4 0
III. Increase/decreas
e in the current
period (less to be 1,186,237,933.8 1,186,237,933.8 1,219,495,878.9
33,257,945.05
filled out with 9 9 4
the minus sign
"-")
(I) Total
1,660,749,958.8 1,660,749,958.8 1,687,357,903.9
comprehensive 26,607,945.05
9 9 4
income
(II) Owner’s
6,650,000.00 6,650,000.00
invested and
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decreased capital
1. Common stock
invested by the 6,650,000.00 6,650,000.00
owner
2. Capital invested by
other equity
instrument holders
3. Amount of
share-based
payment included
in the owner’s
equity
4. Other
(III) Profit
-474,512,025.00 -474,512,025.00 -474,512,025.00
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
preparation
3. Distribution of
owners (or
shareholders)
4. Other
(IV) Internal transfer
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of owner’s
equity
1. Capital surplus
transfer to paid-in
capital (or capital
stock)
2. Earned surplus
transfer to paid-in
capital (or capital
stock)
3. Earned surplus
covering the deficit
4. Carryforward
retained earnings in
variation of defined
benefit plan
5. Carryforward
retained earnings of
other
comprehensive
income
6. Other
(V) Special reserve
1. Draw in this
current
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2. Use in this current
(VI) Other
IV. Balance at the
949,024,050.0 401,799,332.6 -15,157,634.1 474,516,412.5 6,240,444,654.3 8,050,626,815.3 143,152,413.2 8,193,779,228.6
end of current
0 7 6 0 4 5 9 4
period
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8. Statement of change in equity of parent company
Current amount
Unit: yuan
Year 2021
Other equity instruments
Item Minus: treasury Other comprehensive Special Surplus Undistributed Total owners'
Capital stock Preferred Perpetual Capital reserve Other
Other stock income reserve reserves profit equities
stock bond
I. Ending balance in previous year 949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 6,120,603,639.69 7,930,740,817.69
Plus: Changes in accounting policies
Prior period error correction
Other
II. Beginning balance in current year 949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 6,120,603,639.69 7,930,740,817.69
III.Increase/decrease in the current period
(less to be filled out with the minus sign 3,118,765.48 199,995,742.59 -85,000,000.00 850,706,196.33 568,829,219.22
"-")
(I) Total comprehensive income -85,000,000.00 1,324,141,354.33 1,239,141,354.33
(II) Owner’s invested and decreased capital 3,118,765.48 199,995,742.59 -196,876,977.11
1. Common stock invested by the owner
2. Capital invested by other equity instrument
holders
3. Amount of share-based payment included
3,118,765.48 199,995,742.59 -196,876,977.11
in the owner’s equity
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4. Other
(III) Profit distribution -473,435,158.00 -473,435,158.00
1. Withdrawal of surplus reserves
2. Distribution of owners (or shareholders) -473,435,158.00 -473,435,158.00
3. Other
(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital
(or capital stock)
2. Earned surplus transfer to paid-in capital
(or capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in variation
of defined benefit plan
5. Carryforward retained earnings of other
comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
IV. Balance at the end of current period 949,024,050.00 404,873,115.14 199,995,742.59 -100,157,634.16 474,516,412.50 6,971,309,836.02 8,499,570,036.91
Last term amount
Unit: yuan
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2020
Other equity instruments Other
Item Minus: Surplus Undistributed
Capital stock Preferred Perpetual Capital reserve comprehensive Special reserve Other Total owners' equities
Other treasury stock reserves profit
stock bond income
I. Ending balance in
949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 4,955,109,022.86 6,765,246,200.86
previous year
Plus: Changes in
accounting policies
Prior period error
correction
Other
II. Beginning balance in
949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 4,955,109,022.86 6,765,246,200.86
current year
III. Increase/decrease in the
current period (less to be
1,165,494,616.83 1,165,494,616.83
filled out with the minus
sign "-")
(I) Total comprehensive
1,640,006,641.83 1,640,006,641.83
income
(II) Owner’s invested and
decreased capital
1. Common stock invested by
the owner
2. Capital invested by other
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equity instrument holders
3. Amount of share-based
payment included in the
owner’s equity
4. Other
(III) Profit distribution -474,512,025.00 -474,512,025.00
1. Withdrawal of surplus
reserves
2. Distribution of owners (or
shareholders)
3. Other
(IV) Internal transfer of
owner’s equity
1. Capital surplus transfer to
paid-in capital (or capital
stock)
2. Earned surplus transfer to
paid-in capital (or capital
stock)
3. Earned surplus covering
the deficit
4. Carryforward retained
earnings in variation of
defined benefit plan
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5. Carryforward retained
earnings of other
comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
IV. Balance at the end of
949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 6,120,603,639.69 7,930,740,817.69
current period
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III. Basic Status of the Company
Hangzhou ROBAM Appliances Co., Ltd. (ROBAM or the Company) is a limited liability company e stablished by Hangzhou
ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. by means of overall change on November 7, 2000. Approved by China
Securities Regulatory Commission (ZJXK [2010] No.1512) in 2010, the Company issued 40 million ordinary shares to the public for
the first time on November 23, 2010, with a par value of RMB 1 per share and an issue price of RMB 24.00 and the stock code of
002508.
As of December 31, 2021, the capital stock of the Company after several equity changes was 949,024,050 yuan. Unified social credit
code: 91330000725252053F, legal representative: Ren Jianhua; address: No.592, Linping Av., Yuhang Economic Development Zone,
Hangzhou, China.
The Company is mainly engaged in the development, production, sales and comprehensive servic es of kitchen appliances in the
manufacturing industry. Its main products include range hood, gas hob, sterilizer, steamer, oven, dishwasher, water purifier,
microwave, integrated stove and purification tank.
The main business scope is manufacture, processing, sales, export and import business of range hood, gas stove, sterilized cupboard,
oven, steam oven, microwave oven, dishwasher, water purifier, multifunctional tank, kitchenware and other kitchen appliances, as
well as the technical services of home appliances. (Any project that needs to be approved by law can only be carried out after getting
approval by relevant authorities.)
The scope of the Company's consolidated financial statements includes seven subsidiaries: Beijing ROBAM Electric Appliance Sa les
Co., Ltd., Shanghai ROBAM Electric Appliance Sales Co., Ltd., Hangzhou Mingqi Electric Co., Ltd., De Dietrich Household
Appliances Trading (Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., Hangzhou ROBAM Fuchuang
Investment Management Co., Ltd. and Zhejiang Cooking Future Technology Co., Ltd. Compared with the previous year, the
consolidation scope of the Company has not changed this year.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of the going-concern and the accounting policy and accounting
estimate in “IV. Significant accounting policy and accounting estimate” according to the actual transactions and items, the
Accounting Standards for Business Enterprises promulgated by the Ministry of Finance and relevant provisions.
2. Going concern
After comprehensive consideration to the macro policy risks, market operation risks, Company’s current and long-term profitability,
solvency, financial flexibility, intention of the management to change its business policy and other factors, the Company's
management believes that the Company has no issue affecting the Company's going-concern ability within 12 months from the end
of the report.
V. Significant Accounting Policy and Accounting Estimate
The specific accounting policies and accounting estimates formulated by the Company according to the actual production and
operation characteristics include the operating cycle, the recognition and measurement of bad debt prov ision of receivables, the
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measurement of issued inventory, the classification and depreciation of fixed assets, the amortization of intangible assets, the
capitalization conditions of R&D expenses, the income recognition and measurement, etc.
1． Statement on complying with corporate accounting standards
The Company’s financial statements comply with the requirements of the ASBE and truly and completely reflect the Company's
financial position, business performance, cash flows and other relevant information.
2． Accounting period
The fiscal year of the Company runs from January 1 to December 31 of each calendar year.
3． Operating cycle
The Company’s normal operating cycle is one year (12 months).
4． Accounting standard money
The bookkeeping currency of the Company is RMB.
5． Accounting process method of business combination involving enterprises under and not under common control
The assets and liabilities acquired by the Company as the combining party through business combination under common control a re
measured on the combination date according to the book value of the combined party in the consolidated statements of the final
controlling party. The difference between the book value of the net assets obtained and the consideration paid for the combination is
adjusted against capital reserve; if the capital reserve is not sufficient to absorb the difference, the retained earnings shall be adjusted.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired through business combination not under common
control are measured at fair value on the acquisition date. The combined cost is the fair value of the cash or non-cash assets paid,
liabilities incurred or assumed and equity securities issued by the acquirer on the acquiring date for acquisition of the control right of
the acquiree, as well as the sum of direct costs for the business combination (for the business combination realized by steps through
several times, the combined cost is the sum of the costs of each transaction). Where the combined cost exceeds the acquirer’s interest
in the fair value of the acquiree’s net identifiable assets, the difference is recognized as goodwill; where the combined cos t is less
than the acquirer’s interest in the fair value of the acquiree’s net identifiable assets, the acquirer first reassesses the fair values of the
acquiree's identifiable assets, liabilities and contingent liabilities in combination and the fair values of non-cash assets or equity
securities issued for consolidation consideration. If after reassessment, the combined cost is still less than the acquirer's interest in the
fair value of the acquiree’s net identifiable assets, the difference is included in the current non-operating income.
6． Methods for preparing consolidated financial statements
The Company includes all subsidiaries under its control in the consolidated financial statements.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company a nd
subsidiaries are inconsistent, the fina ncial statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company.
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All significant internal transactions, current balances and unrealized profits in the consolidation scope shall be set off when the
consolidated statements are prepared. The share of the owner's equity of the subsidiaries not attributable to the parent company and
current net profits and losses, other comprehensive income, and the share of other comprehensive income attributable to the minority
interests shall be presented in the consolidated financial statements under “minority equity, minority interest income, other
comprehensive income attributed to minority shareholders and total comprehensive income attributed to minority shareholders”.
For a subsidiary in the business combination under common control, its business performance and cash flows have been consolidated
since the beginning of the consolidation year into the consolidated financial statements. When preparing and comparing the
consolidated financial statements, the Company shall adjust the relevant items of the previous year's financial statements, which shall
be regarded as the subject of the consolidated report that has been in existence since the beginning of the control by the final
controlling party.
For a subsidiary in the business combination not under common control, its business performance and cash flows shall be
incorporated into the consolidated financial statements from the date of the Company's acquisition of control. In preparing the
consolidated financial statements, the financial statements of the subsidiary shall be adjusted on the basis of the fair values of the
identifiable assets, liabilities and contingent liabilities as determined on the acquir ing date.
If the Company acquires the equity of the acquiree by steps through several deals and finally forms business combination not under
common control, in the compilation of the consolidated statements, as for the equity interests held in the acquiree before the
acquiring date, they shall be re-measured according to their fair values at the acquiring date; the difference between their fair values
and book value shall be recorded into the investment gains for the period including the acquiring date. Other related comprehensive
gains in relation to the equity interests held in the acquiree under the equity accounting before the acquiring date, and the changes in
owners’ equity other than net profit and loss, other comprehensive income and profit distribut ion shall be carried forward into profit
and loss on investments in the period of the acquiring date, except for other comprehensive income from the change caused by the
remeasurement of the net liabilities or net assets of the defined benefit plan by the investee.
In consolidated financial statements, when the Company disposes of part of long-term equity investment in the subsidiary before
losing control rights, the difference between the disposal price and the long-term equity investment disposed of relative to the share
of the net assets to be enjoyed and continuously calculated from the acquiring date or combination date is adjusted against capital
premium or capital stock premium; if the capital reserve is not sufficient to absorb the difference, the re tained earnings shall be
adjusted.
When the Company loses the control right over the investee due to disposal of part of the equity investment or other reasons, the
residual equity shall be re-measured at its fair value on the date of losing the control right in preparing the consolidated financial
statements. The difference between the sum of the consideration acquired by disposal of the equity and the fair value of the residual
equity, and the share of the net assets of the original subsidiary continuously calculated from the acquiring day or combination date
according to the original shareholding ratio, shall be included in the profit and loss on investments in the period of lose of the control
right and written down against the goodwill. Other comprehens ive income related to the equity investment of the original subsidiary
is transferred into the current profit and loss on investments in the period of loss of control right.
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7． Joint venture arrangements classification and Co-operation accounting treatment
The Company’s joint venture arrangements include cooperative enterprise.
The investment in the cooperative enterprise is subject to the accounting treatment by the Company as the joint venture party
according to the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments.
8． Cash and cash equivalents
The cash in the cash flow statement of the Company refers to the cash on hand and deposits readily availab le for payment. The cash
equivalents represent the short-term (no more than three months) and highly liquid investments that are readily convertible into
known amounts of cash and that are subject to an insignificant risk of change in value.
9． Foreign currency transaction and foreign currency financial statement translation
(1) Foreign currency transaction
The foreign currency transaction of the Company is converted to Renminbi at the spot rate on the transaction date. The foreig n
currency project, on the balance sheet date, is converted to Renminbi at the spot rate. The resulting converted difference is included
in current profit and loss except the balance of exchange of special foreign currency loan related to acquisition or construc tion of
assets meeting the capitalization conditions. Non-monetary items in foreign currency measured at fair value are converted by the spot
rate on the recognition date of the fair value. The difference between the bookkeeping currency amount after conversion and the
original bookkeeping currency amount is recorded into the capital reserve if belonging to non-monetary items in foreign currency of
available-for-sale financial assets, or recorded into current profit and loss if belonging to non-monetary items in foreign currency
measured at fair value and with the changes included in current profit and loss. Non-monetary items in foreign currency measured by
the historical cost are still converted by the spot rate on the transaction date without changing the RMB amount.
(2) Conversion of financial statements denominated in foreign currencies
The assets and liabilities in the balance sheet of a foreign operation are converted at the spot rate on the balance sheet date; all items
of owner’s equity, except the "undistributed profit", are converted at the spot rate at the time of occurrence. The income and expense
items in the income statement of a foreign operation are converted at the approximate exchange rate of the spot rate on the date of
transaction. The converted difference of the foreign currency financial statements generated according to the above translation shall
be presented in other comprehensive income. For a foreign currency monetary item which constitutes a net investment in overse as
operations, the exchange difference resulting from the change of exchange rate shall be presented as other comprehensive income in
the compilation of the consolidated financial statements. Upon disposal of an overseas operation, other comprehensive income
related to the overseas operation shall be transferred to the current profit and loss according to the proportion.
The approximate exchange rate of the spot exchange rate on the date of the cash flows shall be based on for the translation of cash
flows in a foreign currency and in an overseas subsidiary. The effect of a change in exchange rate on cash shall be separately
presented in the cash flow statement.
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10． Financial assets and financial liabilities
The Company recognizes a financial asset or financial liability when becoming a party of the financial instrument contract.
(1) Financial assets
1) Classification, recognition basis and measurement method for financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the
financial assets of the Company are classified into: financial assets measured at the amortized cost; financial assets measured at fair
value of which changes are recorded into other comprehensive income; financial assets at fair value through profit or loss
(“FVTPL”).
The financial asset of the Company that meets the following conditions simultaneously is classified as financial asset measured at the
amortized cost: ① The business model for managing the financial asset is to collect contractual cash flows. ② According to the
contract terms of the financial asset, the cash flow generated on a specific date is only for the payment of the principal and the
interest based on the outstanding principal amount. Such financial asset is initially measured at the fair value and the relevant
transaction costs are charged to initially recognized amount; fur ther measurement is made at the amortized cost. With the exception
of the hedged item designated as such, the difference between the initial amount and the amount due shall be amortized in accordance
with the effective interest method, and the gains and losses arising from the amortization, impairment, exchange gains and losses and
the derecognition shall be recorded into the current profit and loss.
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset measured at
fair value of which changes are recorded into other comprehensive income: ① The business model for managing such financial
assets is to collect contractual cash flows and to sell the financial asset. ② According to the contract terms of the financial asset, the
cash flow generated on a specific date is only for the payment of the principal and the interest based on the outstanding principal
amount. Such financial asset is initially measured at the fair value and the relevant transaction costs are charged to initially
recognized amount. With the exception of the hedged item designated as such, the other gains or losses incurred from such financial
asset, except for credit impairment losses or gains, exchange gains and losses and interest on the financial asset calculated by
effective interest method, shall be included in other comprehensive income; when the financial asset is derecognized, the
accumulated gains or losses previously recorded in other comprehensive income should be transferred from other comprehensive
income in current profit and loss.
The Company recognizes interest income by effective interest method. The interest income is determined by multiplying the book
balance of a financial asset by the effective interest rate, except as follows: ① For an acquired or originated financial asset with
credit impairment, the interest income shall be determined according to the amortized cost of the financial asset and the effective
interest rate adjusted by credit from the initial recognition. ② For an acquired or originated financial asset with credit impairment,
but which has credit impairment in the subsequent period, the interest income of the financial asset shall be determined according to
the amortized cost and the effective interest rate of the financial asset in the subsequent period.
The Company designates the non-transactional equity instruments as the financial assets measured at fair value of which changes are
recorded into other comprehensive income. Such designation, once made, shall not be revoked. The non-transactional equity
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instruments measured at fair value of which changes are recorded into other comprehensive income are initially measured at the fair
value and the relevant transaction costs are charged to initially recognized amount; except for the dividends (excluding the part of
investment cost recovery) recorded into the current profit and loss, other related gains and losses (including exchange gains and
losses) are recorded into other comprehensive income and shall not be transferred into the current profit and loss subsequently. Upon
derecognition, the accumulated gains or losses previously recorded in other comprehensive income should be transferred from other
comprehensive income to the retained earnings.
The above financial assets measured at the amortized cost and the financial assets measured at fair value of which changes are
recorded into other comprehensive income are classified as financial assets at fair value through profit or loss (“FVTPL”). Such
financial asset is initially measured at the fair value and the relevant transaction costs are directly charged to the current profit and
loss. Gains or losses on such financial assets are charged to the current profit and loss.
The financial assets recognized by the Company through business combination not under common control or constituted by
contingent consideration are classified as financial assets at fair value through profit or loss (“FVTPL”).
2) Recognition basis and measurement method for transfer of f inancial assets
The financial asset is derecognized when meeting any of the following conditions: ① The contract right to charge the cash flow of
the financial asset is terminated; ② The financial asset has been transferred and almost all risks and remuneration of the financial
asset ownership are transferred; ③ The financial asset has been transferred and the Company does neither transfer nor retain almost
all risks and remuneration of the financial asset ownership but gives up the control over the financial asset.
If the overall transfer of the financial asset meets the derecognition conditions, the difference of the book value of the transferred
financial asset from the sum of the consideration received and the derecognized amount in the cumulative amount of the fair value
changes originally included in other comprehensive income (according to the contract terms of the financial asset transferred, the
cash flow generated on a specific date is only for the payment of the principal and the interest based on the outstanding principal
amount) is charged to the current profit and loss.
If the partial transfer of the financial asset meets the derecognition conditions, the overall book value of the transferred financial asset,
between the derecognized part and non-derecognized part, is allocated according to the respective relative fair value. The difference
of the sum of the consideration received from transfer and the derecognized amount in the cumulative amount of the fair value
changes in the derecognized part originally included in other comprehensive income (according to the contract terms of the financial
asset transferred, the cash flow generated on a specific date is only for the payment of the principal and the interest based on the
outstanding principal amount) from the overall book value of the above-mentioned financial asset allocated is charged to current
profit and loss.
(2) Financial liabilities
1) Classification, recognition basis and measurement method for financial liabilities
Financial liabilities, upon initial recognition, are divided into those measured with fair value and with the changes included in current
profit and loss and other financial liabilities.
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Financial liabilities measured with fair value and with the changes included in current profit and loss, including the trading financial
liabilities and the financial liabilities measured with fair value and with the changes included in current profit and loss upon initial
recognition. The financial liability is subsequently measured with the fair value. The gain or loss formed from the changes in the fair
value as well as the dividends and interest expenditure related to the financial liability is charged to current profit and loss.
The other financial liabilities are subsequently measured with the amortized cost by means of effective interest method. Except for
the following items, the financial assets are classified as the financial liabilities measured at amortized cost: ① Financial liabilities
measured with fair value and with the changes included in current profit and loss, including the trading financial liabilities (including
derivative instruments belonging to financial liabilities) and the financial liabilities measured with fair value and with the changes
included in current profit and loss. ② Financial liabilities formed by the transfer of financial assets not conforming to the
derecognition conditions or by continuing to involve in the transferred financial assets. ③ Financial guarantee contracts that do not
fall under the above ① or ② circumstances, and loan commitments to lend at a below-market rate that do not fall under the above
① circumstance.
The financial liabilities recognized by the Company as the acquirer through business combination not under common control or
formed by contingent consideration are classified as financial liabilities at fair value through profit or loss for accounting.
2) Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged.
An agreement between the Company and a creditor to replace the existing financial liability with a new one with substantially
different terms is accounted for as the derecognition of the existing financial liability and the recognition of a new financial liability.
When the Company makes material alteration to the contract terms of the existing financial liability (or part of it), it dere cognizes the
existing financial liability (or part of it) and recognizes a new one according to the altered terms. The difference between the book
value of the derecognized part and the consideration paid is charged to current profit and loss.
3) Fair value determination method of financial assets and financial liabilities
The fair value of the financial assets and financial liabilities is measured by the Company at the prices in the principal market. If no
principal market exists, the fair value is measured at the most favorable market price by valuation techniques that are applicable at
the time and are supported by sufficient data and other information available. The input value used in the fair value measurement is
divided into three levels. That is, the input value of the first level is the unadjusted quotation of the same assets or liabilities on the
active market that can be obtained on the measurement day. The input value of the second level is the direct or indirect obse rvable
input value of related assets or liabilities other than the input value of the first level. The input value of the third level is the
non-observable input value of the relevant assets or liabilities. The Company prefers the input value of the first level and fina lly the
input value of the third level. The level of the measurement results of the fair value is determined by the lowest level of the input
value that is of great significance to the measurement of fair value as a whole.
The Company measures the equity instrument investment at fair value. However, in limited cases, if the recent information used to
determine the fair value is insufficient, or the possible estimated amount of the fair value is widely distributed, and the cost represents
the best estimate of the fair value within the range, the cost may represent the appropriate estimate of the fair value within the range.
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(3) Offset of financial assets and financial liabilities
The financial assets and financial liabilities of the Company are listed respectively in the balance sheet and no mut ually offset.
However, when the following conditions are met at the same time, they are listed as net amount after offset in the balance sheet: (1)
the Company has the legal right to offset the recognized amount and may execute the legal right currently; (2) the Company plans to
settle with net amount or realize the financial asset and pay off the financial liability simultaneously.
(4) Distinction between financial liabilities and equity instruments and relevant treatment method
The Company distinguishes between a financial liability and an equity instrument in accordance with the follow ing principles :(1) If
the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other financial assets, the
contractual obligation is defined as a financial liability. Although some financial instruments do not explicitly contain terms and
conditions for the obligation to deliver cash or other financial assets, they may indirectly form contractual obligations through other
terms and conditions. (2) If a financial instrument is to be settled by or with the Company's equity instrument, it is necessary to
consider whether the Company's equity instrument used to settle the financial instrument is to be used as a substitute for ca sh or other
financial assets or to give the holder of the instrument a residual equity in the assets of the issuer after deducting all liabilities. In the
former case, the financial instrument is a financial liability of the issuer; in the latter case, the instrument is the issuer’s equity
instrument. If it is stipulated in a financial instrument contract that the Company shall or may settle the financial instrument by its
own equity instruments in some cases, in which, the amount of the contractual rights or contractual obligations is equal to the number
of its equity instruments available or to be delivered multiplied by its fair value at the time of settlement, the contract is classified as a
financial liability, whether the amount of the contractual rights or obligations is fixed or whether it is based in whole or in part on
changes in variables (such as the interest rate, the price of a commodity or the price of a financial instrument) other than the market
price of the Company's equity instruments.
In classifying a financial instrument (or its components) in the consolidated statements, the Company takes into account all terms and
conditions agreed between the members of the Company and the financial instrument holder. The instrument shall be classified as a
financial liability if the Company as a whole is obligated to deliver cash, other financ ial assets, or settle accounts in other ways that
cause the instrument to become a financial liability as a result of the instrument.
The interest, dividends, profits or losses related to a financial instrument or its components classified as a financial liability, as well as
gains or losses from redemption or refinancing, shall be recorded into the Company's current profit and loss.
The issuance (including refinancing), repurchase, sales or cancellation of financial instrument or its components classified as equity
instruments is handled as the equity changes, and the fair value change of the equity instruments is not recognized.
(5) Impairment of financial instruments
The Company withdraws the provision for impairment for the financial assets measured at the amortized cost, financial assets
measured at fair value of which changes are recorded into other comprehensive income, and financial guarantee contracts based on
the expected credit loss, and recognizes the credit impairment loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the risk of default. Credit loss
refers to the difference between all contract cash flows discounted by the Company at the original effective interest rate and
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receivable according to the contract and all expected cash flows received, that is, the present value of all cash shortage. The financial
assets purchased or originated that have suffered from credit impairment shall be discounted at the effective interest rate of the
financial assets through credit adjustment.
The provision for loss on the accounts receivable from standard transactions in the income guidelines and not containing mate rial
financing elements shall be measured by the Company by simplified measurement according to the amount equivalent to the
expected credit loss in the whole duration.
For the financial assets purchased or originated that have suffered from credit impairment, only the cumulative changes of the
expected credit loss in the whole duration upon initial recognition are recognized as provision for loss on the balance sheet date. On
each balance sheet date, the amount of change in the expected credit loss over the entire duration is recorded as an impairment loss or
gain in the current period. Favorable changes in the expected credit loss are recognized as impairment gains even if the expected
credit loss for the entire duration recognized on the balance sheet date is less than the amount of overdue credit loss reflected in the
estimated cash flow upon initial recognition.
For the financial assets other than those purchased or originated that have suffered from credit impairment by simplified
measurement, the Company shall eva luate whether the credit risk of relevant financial instrument has increased significantly upon
initial recognition on each balance sheet date and measure its provision for loss and recognize the expected credit losses and changes
respectively in the following cases:
1) If the credit risk of the financial instrument has not increased significantly upon initial recognition and is in the first stage, its
provision for loss is measured according to the amount equivalent to the expected credit loss of the financia l instrument in the next 12
months, and the interest income is calculated according to the book balance and the effective interest rate.
2) If the credit risk of the financial instrument has significantly increased without credit impairment upon initial recognition and is
in the second stage, its provision for loss is measured according to the amount equivalent to the expected credit loss of the financial
instrument in the whole duration, and the interest income is calculated according to the book balance and the effective interest rate.
3) If the financial instrument has suffered from credit impairment upon initial recognition and is in the third stage, its provision for
loss is measured according to the amount equivalent to the expected credit loss of the financial instrument in the whole duration, and
the interest income is calculated according to the amortized cost and the effective interest rate.
The amount increased or written back of the provision for credit loss of the financial instrument is recorded as an impairment loss or
gain in the current period. Except for financial assets measured at fair value of which changes are recorded into other comprehensive
income, the book balance of financial assets is offset by the provision for credit losses. For financial assets measured at fair value of
which changes are recorded into other comprehensive income, the Company recognizes its provision for credit losses in other
comprehensive income and does not reduce the book value of the financial assets on the balance sheet.
If the Company has measured the provision for loss in the previous accounting period according to the amount equivalent to the
expected credit loss of the financial instrument in the whole duration but the credit risk of the financial instrument has no longer been
increased significantly upon initial recognition on the current balance sheet date, the Company shall measure the provision for loss on
the financial instrument on the current balance sheet date according to the amount equivalent to the expected credit loss in the next 12
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months and the resulting amount written back from the provision for loss is recorded as an impairment gain in the current period.
① Significant increase in credit risk
By means of the reasonable and valid forward-looking information available, the Company determines whether the credit risks of
financial instruments have increased significantly upon initial recognition by comparing the default risk of the financial instruments
on the balance sheet date with the default risk on the initial recognition date. For financial guarantee contracts, when the Compan y
applies the impairment provisions on financial instruments, the date on which the Company becomes a party to make an irrevoca ble
commitment shall be the initial recognition date. The Company will consider the following factors when assessing whether the credit
risk has increased significantly: whether there are significant changes in the actual or overdue operating results of the debtor; whether
there has been a significant adverse change in the regulatory, economic or technical environment in which the debtor resides; whether
there are significant changes in the value of collateral as collateral for debt or in the quality of guarantees or credit enhancements
provided by third parties, as well as the probability that these changes are expected to reduce the financial incentive for the debtor to
repay on the terms specified in the contract or affect the breach of contract; whether there has been a significant change in the
expected performance and repayment behavior of the debtor; whether the Company's credit management methods for financial
instruments have changed.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the credit risk has not increased
significantly upon the initial recognition. The financial instrument is considered to have a low credit risk if the financial instrument
has relatively low default risk, and the borrower has a strong ability to fulfill its contractual cash flow obligations in a short term,
which will not necessarily reduced even if there are adverse changes in the economic situation and operating environment in a long
term.
② Financial assets that have suffered from credit impairment
When one or more events occur that adversely affect the expected future cash flow of a financial asset, the financial asset becomes a
financial asset with credit impairment. The evidence for credit impairment of financial assets includes: the debtor has incur red major
financial difficulties; the debtor breaches a contract, such as by default or exceeding payment of default or late payment of interest or
principal; the creditor gives the debtor concessions that he would not make under any circumstances for economic or contractual
reasons related to the debtor's financial difficulties; the debtor is likely to go bankrupt or undergo other financial restructuring; the
financial difficulties of the issuer or debtor cause the active market for the financial asset to disappear; a substant ial discount at which
a financial asset is purchased or originated reflects the fact of credit loss.
The credit impairment of the financial asset may be caused by the joint action of the above events, and may not necessarily be caused
by the events that can be identified separately.
③ Determination of expected credit loss
The Company evaluates the expected credit losses of financial instruments on the basis of individual and combined instruments, and
in assessing the expected credit losses, takes into account reasonable and valid information about past events, current conditions and
projections of future economic conditions.
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Based on the characteristics of common credit risks, the Company divides financial instruments into different combinations. The
individual assessment standards and the characteristics of the combination credit risks of relevant financial instruments are detailed in
the accounting policies of relevant financial instruments.
The Company shall determine the expected credit losses of the relevant financial instruments in the following ways:
In the case of a financial asset, the credit loss is the present value of the difference between the contract cash flow receivable by the
Company and the expected cash flow receivable;
In the case of a financial guarantee contract, the credit loss is the present value of the difference between the estimated amount of
payment to be made by the Company in respect of any credit loss incurred under the contract, and the amount that the Company
expects to receive from the contract holder, debtor or anywhere else;
In the case of a financial asset with credit impairment on the balance sheet date but not purchased or originated with credit
impairment, the credit loss is the difference between the book balance of the financial asset and the present value of the estimated
future cash flow discounted at the original effective interest rate.
11． Notes receivable
Based on the acceptor credit risk of notes receivable as a common risk feature, the Company divides the notes receiva ble into
different combinations and determines the expected credit loss account ing estimation policy:
Combination Basis for recognition of
Accrual method
classification combination
The Company believes that the banker's acceptance bill held
Banker's acceptance bill The acceptor is a banking financial
does not have significant credit risk and will not cause major
combination institution
losses due to bank default.
The acceptor is a financial company The Company measures the provision for bad debt of
Commercial acceptance
or other non-bank financial commercial acceptance bills receivable according to the
bill combination
institution or enterprise unit expected credit loss of the entire duration
12． Accounts receivable
The provision for loss on the accounts receivable (whether or containing material financing elements) from standard transactions in
the Accounting Standards for Enterprises No.14 - Revenues and on the lease receivables regulated in the Accounting Standards for
Enterprises No. 21 - Lease shall be measured by the Company by simplified measurement according to the amount equivalent to the
expected credit loss in the whole duration.
The Company shall evaluate whether the credit risks of accounts receivable have increased significantly on the basis of a single
financial instrument or a financial instrument combination. The Company makes single assessment of the credit risks for the accounts
receivable with significantly different credit risks and the following features: accounts receivable in dispute with the other party or
involving litigation or arbitration; accounts receivable with obvious signs that the debtor is likely to be unable to perform the
repayment obligations. It is feasible for the Company to evaluate whether the credit risks increase signif icantly on the basis of
financial instrument combination if it is unable to obtain sufficient evidence for significant increase in credit risks at reasonable cost
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at the level of single financial instrument. The Company can classify financial instruments based on the characteristics of common
credit risk in assessment based on the financial instrument combination.
The Company divides the accounts receivable into the following combinations based on their credit risk characteristics:
Combination classification Basis for recognition of combination Accrual method
Credit loss withdrawn on accounts The receivables with the same aging have similar
Expected credit loss rate
receivable by aging analysis method credit risk characteristics
Related parties in the cons olidation Funds of subsidiaries in the consolidation scope
Generally no expected credit loss
scope of controlling shareholders
If there is objective evidence that a credit impairment has occurred in an account receivable, the Company shall withdraw the
provision for bad debts for that account receivable and recognize the expected credit loss.
For the accounts receivable with the credit loss drawn by aging analysis method, based on the actual credit losses of the pre vious year
and taking into account the forward-looking information of the current year, the Company's accounting estimation policy for
measuring expected credit losses is as follows:
Aging Expected credit loss rate
Within 1 year 5.00%
1~2 years 10.00%
2~3 years 20.00%
3~4 years 50.00%
4~5 years 80.00%
More than 5 years 100.00%
The Company shall calculate the expected credit loss of the accounts receivable on the balance sheet date. If the expected credit loss
is greater than the book amount of the provision for impairment of current accounts receivable, the Company recognizes the
difference as the provision for impairment of accounts receivable, debits the "credit impairment loss" and credits the "provision for
bad debt". On the contrary, the Company recognizes the difference as an impairment gain and records the opposite.
Where the Company has actually incurred a credit loss and the relevant accounts receivable are determined to be irrecoverable, and
the write-off is approved, the "provision for bad debt" shall be debited and the "accounts receivable" shall be credited according to
the approved write-off amount. If the write-off amount is greater than the provision for loss which has been calculated, the "credit
impairment loss" shall be debited according to the difference.
13． Receivables financing
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset measured at
fair value of which changes are recorded into other comprehensive income: the business model for managing such financial assets is
to collect contractual cash flows and to sell the financial asset; according to the contract terms of the financial asset, the cash flow
generated on a specific date is only for the payment of the principal and the interest based on the outstanding principal amount.
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The Company transfers the accounts receivable held in the form of discount or endorsement. Such accounts receivable with frequent
business and large amount involved are measured at fair value and their changes are recorded into ot her comprehensive income
according to relevant regulations in the financial instrument standards if the management business model is to collect and sell
contractual cash flows.
14． Other receivables
The Company divides the process of credit impairment of other receivables into three stages, and has different accounting treatment
methods for other receivables impairment in different stages:
(1) the credit risks has not increased significantly upon initial recognition (first stage).
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit loss
over the next 12 months.
The Company takes aging as the credit risk characteristic to group other receivables and measures them on the basis of combination,
which is equivalent to the expected credit loss in the next 12 months.
(2) The credit risk has significantly increased without credit impairment upon initial recognition (second stage).
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit loss in
the whole duration.
(3) Credit impairment upon initial recognition (third stage)
For the financial instruments in this stage, the Company should measure the provision for loss according to the expec ted credit loss in
the whole duration.
15． Inventory
The Company's inventory mainly includes low priced and easily worn articles, raw materials, work in process, merchandise
inventory and goods shipped in transit, etc.
The perpetual inventory system is adopted for the inventories and the inventories are price according to the actual cost when obtained;
the cost of the inventories is recognized by the weighted average method when received or issued. The low priced and easily w orn
articles and packages are amortized by one-time writing-off method.
The year-end inventory is priced according to the cost of inventories or net realizable value, whichever is lower. In case of inventory
damage, full or partial obsolescence or selling price below the cost, the non-recoverable part of its cost is expected and the inventory
falling price reserves are withdrawn. The inventory falling price reserves of the merchandise inventory and raw materials are
withdrawn according to the difference between the cost of a single inventory item and its net realizable value; for the inventories with
large quantity and low unit price, the inventory falling price reserves are withdrawn according to the inventory category.
For the merchandise inventory, work in process, materials for sale and ot her merchandise inventories directly used for sale, the net
realizable value is recognized by the amount of the estimated sale price of the inventories subtracted by the estimated selling
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expenses and related taxes; for the material inventory possessed for production, the net realizable value is recognized by the amount
of the estimated sale price of the finished products subtracted by the estimated cost about to occur in completion, estimated selling
expenses and related taxes.
16． Contract assets
(1) Methods and standards for the recognition of contract assets
Contract assets refer to the Company's rights to receive consideration for the transfer of goods to the customer, and such rights are
subject to factors other than the passage of time. If the Company sells two clearly distinguishable commodities to customers, and it
has the right to receive payment due to the delivery of one of the commodities, but the receipt of such payment also depends on the
delivery of another commodity, the Company regards the right to receive payment as a contract asset.
(2) Recognition method and accounting treatment method of the expected credit loss of contract assets
For the recognition method of expected credit loss of contract assets, refer to the above 10. Financial assets and financ ial liabilities,
11. Notes receivable and 12. Accounts receivable.
The Company shall calculate the expected credit loss of the contract assets on the balance sheet date. If the expected credit loss is
greater than the book amount of the provision for impairment of current contract assets, the Company recognizes the difference as the
provision for impairment, debits the "assets impairment loss" and credits the "provision for impairment of contract assets". On the
contrary, the Company recognizes the difference as an impairment gain and records the opposite.
Where the Company has actually incurred a credit loss and the relevant contract assets are determined to be irrecoverable, and the
write-off is approved, the "provision for impairment of contract assets" shall be debited and the "contract assets" shall be credited
according to the approved write-off amount. If the write-off amount is greater than the provision for loss which has been calculated,
the "assets impairment loss" shall be debited according to the difference.
17． Contract cost
(1) Recognition method of asset amount related to contract cost
The Company's assets related to contract cost include the contract performance cost and the contract acquisition cost.
The contract performance cost, that is, the cost incurred by the Company for the performance of the contract, which is not within the
scope of other accounting standards for business enterprises and meets the following conditions at the same time, is recognized as an
asset as the contract performance cost: such cost is directly related to a current or prospective contract, including direct labor, direct
materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer and other costs incurred solely as a
result of the contract; Such cost increases the resources used by the Company to fulfill its performance obligations in the future; And
such cost is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the Company to acquire the contra ct, which is expected to be
recovered, is recognized as an asset as the contract acquisition cost; If the amortization period of such asset does not exceed one year,
it shall be recorded into the current profit and loss when it occurs. Incremental cost refers to the cost that will not occur if the
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Company does not acquire the contract (such as sales commission, etc.). Other expenses incurred by the Company to acquire the
contract other than the expected recoverable incremental costs (such as travel expenses incurred regardless of whether the contract is
acquired or not) shall be recorded into the current profit and loss when it occurs, except those clearly borne by the customer.
(2) Amortization of assets related to contract cost
Assets related to contract costs are amortized on the same basis as income recognition of goods related to the asset, and are recorded
into the current profit and loss when it occurs.
(3) Impairment of assets related to contract cost
When determining the impairment loss of assets related to the contract cost, the Company first determines the impairment loss of
other assets related to the contract recognized in accordance with other relevant accounting standards for business enterprises; Then,
if the book value is higher than the difference between the residual consideration expected to be obtained by the Company due to the
transfer of goods related to the asset and the estimated cost to be incurred for the transfer of relevant goods, the excess part shall be
accrued for impairment provision and recognized as asset impairment loss.
If the factors of impairment in the previous period change so that the difference above is higher than the book value of the asset, the
Company shall reverse the withdrawn asset impairment provision and include it into the current profit and loss, but the book value of
the reversed asset shall not exceed the book value of such asset on the reversal date if the impairment provision is not withdrawn.
18． Long-term equity investment
The Company's long-term equity investment mainly consists of investment in subsidiaries, joint ventures and cooperative enterprises.
The Company's judgment on common control is based on the collective control of the arrangement by all participants or a
combination of participants, and the policy on the activities related to the arrangement must be agreed upon by all participants in the
collective control of the arrangement.
When the Company directly or indirectly owns more than 20% (including) but less than 50% voting rights of the investee throug h its
subsidiaries, it is generally considered to have a significant impact on the investee. When the Company owns less than 20% voting
rights of the investee, it shall be judged to have a significant impact on the investee with comprehensive consideration t o dispatching
representatives in the board of directors of the investee or similar authority, participating in the formulation process of the financial
and business policy of the investee, conducting important transactions with the investee, dispatching ma nagement to the investee or
providing key technical data for the investee.
The company that forms control over the investee shall be a subsidiary of the Company. For the long-term equity investment
acquired through business combination under common control, the share of the book value of the net assets of the combined party in
the consolidated statements of the final controlling party, on the combination date, is regarded as the initial cost of the long-term
equity investment. If the book value of the net assets of the combined party on the combination date is negative, the long-term equity
investment cost shall be determined as zero.
If the Company acquires the equity of the investee under common control by steps through several deals, finally forms busines s
combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to obtain the control
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right. If the deals do not belong to the package deal, the share of the book value of the net assets of the combined party in the
consolidated financial statements of the final controlling party, on the combination date, is regarded as the initial cost of the
long-term equity investment. The difference between the initial cost of the long-term equity investment and the sum of the book
value of the long-term equity investment before the combination plus the book value of the new consideration for shares on the
combination date is adjusted against capital reserve; if the capital reserve is not sufficient to absorb the difference, the retained
earnings shall be written down.
For the long-term equity investment acquired through business combination not under common control, the combined cost is the
initial investment cost.
If the Company acquires the equity of the investee not under common control by steps through several deals, finally forms business
combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to obtain the control
right. If the deals do not belong to the package deal, the sum of the book value of the equity investment originally held and newly
increased investment cost shall be considered as initial cost of the investment that calculates according to cost method. If the equity
held before the acquiring date is ca lculated by the equity method, other comprehensive income calculated by the equity method is not
adjusted and shall be subject to accounting treatment when disposing of the investment through adopting the basis for the direct
disposal of relevant assets or liabilities of the investee. If the original equity held before the acquiring date is calculated at fair value
in the available-for-sale financial assets, the change in the cumulative fair value originally included in other comprehensive income is
transferred to the current investment profit and loss on the combination date.
Except for the long-term equity investment acquired through business combination, for the long-term equity investment made by
paying cash, the investment cost shall be the purchase price actually paid; for the long-term equity investment acquired by issuing
equity securities, the investment cost shall be the fair value of the equity securities issued; for the long-term equity investment
acquired through the exchange of non-monetary assets, the initial investment cost shall be recognized in accordance with the rele vant
provisions of the Accounting Standards for Business Enterprises No.7 - Exchange of Non-monetary Assets; for the long-term equity
investment acquired by debt restructuring, the initial investment cost shall be recognized in accordance with the relevant provisions
of the Accounting Standards for Business Enterprises No.12 - Debt Restructuring.
The investment in subsidiaries is measured by the cost method and the investment in joint ventures and cooperative enterprises is
measured by equity method.
For the long-term equity investment calculated by cost method subsequently, the long-term equity investment cost is adjusted when
the investment is added or recovered. The cash dividends or profits declared to be distributed by the investee should be recognized as
current investment income.
The book value of the long-term equity investment measured subsequently by equity method shall be increased or decreased with the
change in the owner’s equity of the investee. The share of the net profits and losses of the investee to be enjoyed shall be recognized
after offsetting of the part of the internal deal profits and losses attributable to the Company between the joint venture and
cooperative enterprise according to the shareholding ratio and after adjustment of the new profits of the investee on the basis of the
fair value of the identifiable assets of the investee when the investment is obtained and according to the Company’s accounting policy
and accounting period.
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In disposal of the long-term equity investment, the balance between the book value and the actual price obtained is charged to current
investment income. If a long-term equity investment calculated by the equity method is included in the owner's equity due to changes
in the owner's equity other than the net profit and loss of the investee, the part originally included in the owner's equity in the disposal
of the investment shall be transferred to the current investment profit and loss by the corresponding proportion.
If the deals for disposal of the equity by steps until the loss of the control right do not belong to the package deal, each deal shall be
subject to accounting treatment respectively. If they belong to a package deal, the deals shall be subject to accounting treatment as a
deal for disposal of subsidiary and loss of the control right; however, the difference between each disposal price and the book value
of the long-term equity investment corresponding to the equity disposed of before the loss of control right is recognized as other
comprehensive income and then transferred into the current profit and loss in the period of loss of control right.
19． Investment properties
The Company’s investment properties include the leased buildings which are measured by cost model.
The Company's investment properties are depreciated or amortized by the straight-line depreciation method. The estimated service
life, net residual rate and yearly depreciation (amortization) ratio of all types of investment properties are as follows:
Yearly depreciation
Category Depreciation life (year) Expected residual rate (%)
(%)
Houses and buildings 20 5.00 4.75
20． Fixed assets
The Company’s fixed assets refer to the tangible assets with the following features which are held for production of goods, provision
of labor, lease (excluding lease of buildings) or operating management and whose service life exceeds year.
The fixed assets can be recognized when the economic benefits related to the fixed assets are likely to flow to the Company and
when the cost of the fixed assets can be reliably measured. The fixed assets, including buildings, machinery equipment,
transportation equipment and other equipment, are entered into the account by actual cost when obtaine d, in which, the cost of
purchased fixed assets includes buying price, import tariff and other relevant taxes, as well as other expenses incurred before the
fixed assets reach the extended usable status and directly attributable to the assets; cost of self-constructed fixed assets, consisting of
necessary expenses incurred from construction of the asset to the intended serviceable conditions; the cost invested by the investors
in the fixed assets is determined according to the value stipulated in the investment contracts or agreements, except the value
stipulated in the contracts or agreements is not fair; the fixed assets under financing lease shall be recorded in the accounts according
to the lower present value between the fair value of the leased asset on the lease commencement date and the minimum lease
payment.
Except the fixed assets withdrawn with depreciation and remaining use, the Company withdraws depreciation of all fixed assets by
the straight-line depreciation method. According to the category of fixed assets, estimated economic life and expected net residual
rate, the depreciation is determined as follows:
Category Depreciation life Residual rate Yearly depreciation
Houses and buildings 20 5.00% 4.75%
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Machinery equipment 10 5.00% 9.50%
Transportation equipment 5 5.00% 19.00%
Other equipment 5 5.00% 19.00%
Accounting treatment of subsequent expenditure of fixed assets: subsequent expenditure of fixed assets mainly includes the
transformation and renovation expenses and repair expenses. If the economic benefits related may flow in and the cost can be reliably
measured, the subsequent expenditure is included in the fixed asset cost and the book value of the replaced part is derecognized. The
other subsequent expenditure is charged to current profit and loss upon occurrence.
The Company shall review the service life, estimated residual value and depreciation method of the fixed assets on each balance
sheet date and handle any change as the accounting estimate change.
When the fixed assets are disposed of or cannot generate economic benefits through expected use or disposal, the fixed assets are
derecognized. The income from sale, transfer, scrap or damage disposal of fixed assets is included in current profits and los ses after
deducting the book va lue and related taxes.
21． Construction in progress
The construction in progress is measured according to the actual cost. The self-run construction shall be measured by direct materials,
direct wages and direct construction costs; the outsourced construction shall be measured according to the paid project cost; the
equipment installation project cost shall be determined according to the value, installation cost and test run expenses of the
equipment installed. The cost of the construction in progress should also include the capitalized borrowing costs.
The fixed assets of the construction shall be carried forward to the fixed assets by the estimated value according to the construction
budget, cost or actual construction cost from the date when they reach the intended usable state, and the depreciation shall be
calculated and withdrawn from the following month. The original value difference of the fixed assets is adjusted after the completion
settlement procedures.
22． Borrowing costs
Recognition principle of capitalization of borrowing costs: the construction or production borrowing costs incurred and directly
attributable to the assets meeting the capitalization conditions are capitalized and charged to relevant asset costs; other borrowing
costs shall be recognized as costs according to the amount incurred when they occur and shall be included in the current profit and
loss. Assets meeting the capitalization conditions refer to the fixed assets, intangible assets, inventories and other assets which can
reach the intended usable or marketable status only after quite a long time (generally more than 1 year) of construction or production
activities.
Capitalization period of borrowing costs: the borrowing costs related to the assets that meet the capitalization conditions start to be
capitalized when the expenditure to acquire and the borrowing costs have occurred and the construction or production activities
required to make the assets reach the usable or marketable status have started. In case of abnormal interrupt of the assets meeting the
capitalization conditions for more than 3 consecutive months in the construction or production process, the capitalization of the
borrowing costs is suspended; the borrowing costs stop capitalization when the construction or production assets meeting the
capitalization conditions reach the usable or marketable status.
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Calculation method for capitalized amount of borrowing costs: when special borrowings are borrowed for construction or produc tion
of the assets meeting the capitalization conditions, the difference between the interest incurred in the period of spec ial borrowings
and the interest income from the unused borrowing fund in the bank or the investment income of temporary investment is deemed as
the capitalized amount of the interest on the special borrowings. When general borrowings are occupied for construction or
production of assets meeting the capitalized conditions, the weighted average of the expenditure to acquire exceeding the spe cial
borrowings in the cumulative expenditure to acquire is multiplied by the weighted average interest rate of the general borrowings
occupied to calculate and determine the amount of interest to be capitalized on the general borrowings.
23． Right-of-use assets
The right-of-use assets refers to the right of the Company, as the lessee, to use the leased assets during the lease term.
(1) Initial measurement
On the beginning date of the lease term, the Company make the initial measurement of the right-of-use assets according to the cost.
The cost includes the following four items: ① the initial measurement amount of lease liabilities; ② the amount of lease payment
paid on or before the beginning of the lease term. If there is lease incentive, the amount of lease incentive already enjoyed will be
deducted from it; ③ The initial direct expenses incurred are the incremental costs incurred in reaching the lease; ④ The costs
expected to occur for dismantling and removing the leased assets, restoring the site where the leased assets are located or r estoring
the leased assets to the state agreed in the lease terms, except those incurred for the production inventory.
(2) Subsequent measurement
After the beginning date of the lease term, the Company adopts the cost model for subsequent measurement of the right-of-use assets,
that is, the right-of-use assets are measured at cost less accumulated depreciation and accumulated impairment losses. If the
Company re-measures the lease liabilities in accordance with the relevant provisions of the lease standards, the book value of the
right-of-use assets shall be adjusted accordingly.
Depreciation of right-of-use assets
From the beginning date of the lease term, the Company makes the depreciation of the right-of-use assets. The right-of-use assets are
usually depreciated from the month when the lease term begins. The amount of depreciation accrued shall be included in the cost of
relevant assets or current profit and loss according to the purpose of the right-of-use assets.
When determining the depreciation method of the right-of-use assets, the Company makes a decision according to the expected
consumption mode of the economic benefits related to the right-of-use assets, and depreciates the right-of-use assets by using the
straight-line method.
The Company follows the following principles when determining the depreciation life of the right-of-use assets: Where it can be
reasonably determined that the ownership of the leased assets can be acquired upon the expiration of the lease term, deprecia tion
shall be calculated and withdrawn during the remaining service life of the leased assets; where it is impossible to reasonably
determine that the ownership of the leased assets can be acquired upon the expiration of the lease term, the depreciation sha ll be
calculated and withdrawn within a shorter period of the lease term and the remaining service life of the leased assets.
Impairment of right-of-use assets
In case of impairment of the right-of-use assets, the Company will conduct subsequent depreciation according to the book value of
the right-of-use assets after deducting the impairment loss.
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24． Intangible assets
The Company's intangible assets mainly include land use rights, software, trademarks, patents, etc. The actual cost of the purchas ed
intangible assets shall be the actual cost and other relevant expenses. The actual cost of the intangible assets invested by the investors
is determined according to the value stipulated in the investment contracts or agreements. If the value stipulated in the contracts or
agreements is not fair, the actual cost is determined according to the fair value. The intangible assets are amortized by the
straight-line method. The classification and amortization period of the Company's intangible assets are as follows:
Category Amortization period
Land use right 50
Patent 10
Software 3~5 years
Trademark and domain name 10
The Company’s land use right is amortized averagely according to the transfer life from the date of transfer; the Company's patent
right, non-patented technology, the right to use the special software and other intangible assets are amortized averagely by the
shortest of the estimated service life, the beneficial life stipulated in the contract and the effective life stipulated by law. The
amortization amount shall be recorded into the current profit and loss or the cost of related assets according to its beneficiary object.
The expected useful life and amortization methods of the intangible assets with limited useful life are reviewed at the end of each
year and adjusted accordingly in case of change; the expected useful life of the intangible assets with uncertain useful life are
reviewed in each accounting period. If there is evidence that the service life of intangible assets is limited, the service life shall be
estimated and amortized within the expected useful life.
The expenditure of the Company's internal R&D projects is classified into the expenditure at the research stage and the expenditure
at the development stage according to its nature and great uncertainty of the intangible assets eventually formed by R&D activities.
For intangible assets developed independently, the expenditure in the research stage shall be included in the current profit and loss
when it occurs; The expenditures in the development stage shall be recognized as assets if they meet the following conditions at the
same time:
(1) Technically feasible to complete the intangible assets, so that they can be used or sold;
(2) It is intended to finish and use or sell the intangible assets;
(3) The products generated by the intangible assets can be sold or the intangible assets themselves can be sold;
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of
sufficient technologies, financial resources and other resources; and
(5) The development expenditures of the intangible assets can be reliably measured.
The expenses at the development stage not meeting above conditions are included in current profits and losses when obtained. The
development expenses included in profits and losses in previous periods are not recognized as assets in subsequent periods. The
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capitalized expenses at the development stage are listed as development expenses in the balance sheet and transferred to inta ngible
assets when the project reaches the intended usable state.
If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished, the R&D expenditure
incurred is fully charged to the current profit and loss. The cost of intangible assets formed by internal development activities consists
only of the total expenditure incurred between the point at which the conditions for capitalization are met and the time at which the
intangible assets reach their intended use. The expenditure that has been expensed and included in the profit and loss for the same
intangible asset before reaching the capitalization conditions in the development process is no longer adjusted.
25． Long-term assets impairment
The Company checks the intangible assets determined for the long-term equity investment, fixed assets, construction in progress and
service life of the subsidiaries, joint ventures and cooperative enterprises on each balance sheet date. When there are the following
signs, indicating that the assets may be impaired, the Company will conduct impairment test; for intangible assets with uncertain
goodwill and beneficial life, impairment test shall be conducted at the end of each year whether there is any sign of impairment or not.
Where it is difficult to test the recoverable amount of a single asset, the test shall be based on the asset group or the combination of
asset groups to which the asset belongs.
After the impairment test, if the book value of the asset exceeds the recoverable amount, the difference is recognized as an
impairment loss. Once the impairment loss of the said asset is recognized, it will not be carried back in the subsequent accounting
period. The recoverable amount of an asset is the higher of the net amount of the assets fair value subtracted by the disposal costs and
the present value of the expected future cash flow of the assets.
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Signs of impairment are as follows:
(1) The market price of assets has fallen sharply in the current period, and its decline is significantly higher than the expecte d
decline due to the passage of time or normal use;
(2) The economic, technical or legal environment in which the enterprise operates and the market in which its assets are located are
undergoing or will undergo significant changes in the current period or in the near future, thus adversely affecting the enterprise;
(3) The market interest rate or other market return on investment has increased in the current period, which affects the discount rate
of the enterprise in calculating the present value of the expected future cash flow of assets, resulting in a significant reduction in the
recoverable amount of asset;
(4) There is evidence that the assets have become obsolete or its entity has been damaged;
(5) The assets have been or will be idle, terminated or disposed of in advance;
(6) The evidence in the internal report of the enterprise indicates that the economic performance of the assets has been or will be
lower than the expectation, such as the net cash flow created by the assets or the realized operating profit (or loss) is far lower (or
higher) than the expected amount;
(7) Other signs indicating that the assets may have been impaired.
26． Goodwill
Goodwill refers to the difference between the cost of equity investment or the cost of business combination not under the same
control and the fair value share of the investee or the acquiree's identifiable net assets that should be enjoyed or acquired in the
business combination on the acquisition date or the acquisition purchase date.
Goodwill related to subsidiaries is presented separately in the consolidated financial statements, and goodwill related to joint ventures
and cooperative enterprises is included in the book value of long-term equity investment.
27． Long-term unamortized expenses
The long-term unamortized expenses of the Company refer to the expenses that have been paid, but should be borne in the current
period and subsequent periods with the amortization period of more than one year (excluding one year). Such expenses are amortized
on average in the benefit period. If a long-term unamortized expense item cannot benefit a later accounting period, the amortized
value of the item that has not been amortized is transferred to the current profit and loss.
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28． Contract liabilities
Contract liabilities reflect the obligations of the Company to transfer goods to customers for consideration has been received or
receivable from customers. If the customer has paid the contract consideration or the Company has obtained the right to receive the
contract consideration unconditionally before the Company transfers the goods to the customer, the contract liabilities shall be
recognized according to the amount received or receivable at the earlier of the actual payment made by the customer and the due
payment.
29． Employee compensation
The Company’s employee compensation includes short-term compensation, welfare after dismission, dismission welfare and other
long-term employee services and benefits.
The short-term compensation mainly includes salary, bonus, allowances and subsidies, employee services and benefits, housing fund,
labor union expenditure and personnel education fund, medical insurance premiums, industrial injury insurance premium, birth
insurance premium and other social insurance premiums. The short-term compensation actually happened during the accounting
period when the staff offering the service for the Company shall be recognized as liabilities and included in the current gains and
losses or relevant assets cost by the beneficiary object.
Post-employment benefits mainly include basic endowment insurance, unemployment insurance and enterprise annuity payment and
are classified as defined contribution plans according to the risks and obligations undertaken by the Company. The sinking funds
made to a separate entity on the balance sheet date in exchange for services rendered by the employee during the accounting period
shall be recognized as liabilities and included in the current gains and losses or relevant assets cost by the beneficiary object.
The Company puts forward compensation for an employee to terminate the labor relationship with the employee before expiry of the
employee labor contract. When failing to unilaterally withdraw the dismission welfare due to termination of labor relation plan or
downsizing suggestions, or when recognizing the costs related to restructuring involving payment of dimission welfare (whichever
comes first), the Company recognizes the employee compensation liabilities from the dismission welfare and includes in current
profit and loss. The compensation that is paid beyond a year is included in current profit and loss after discount.
Other long-term employee benefits mainly include the long-term incentive plan and long-term benefits and shall be subject to the
accounting treatment according to relevant provisions in the defined contribution plans.
30． Lease liabilities
(1) Initial measurement
The Company initia lly measures the lease liabilities according to the present value of the unpaid lease payments at the beginning date
of the lease term.
1) Lease payments
Lease payments refer to the amounts paid by the Company to the lessor related to the right to use the leased assets during the lease
term, including: ① fixed payment and substantial fixed payment. If there is lease incentive, the amount related to lease incentive
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shall be deducted from it; ② The amount of variable lease payments depending on the index or ratio, which is determined at the
initial measurement according to the index or ratio on the beginning date of the lease term; ③ The Company reasonably determines
the exercise price of the call option when it will exercise the call option; ④ The amount to be paid for exercising the option to
terminate the lease when the lease term reflects that the Company will exercise the option to terminate the lease; ⑤ The amount
expected to be paid according to the guarantee residual value provided by the Company.
2) Discount rate
When calculating the present value of lease payments, the Company adopts the interest rate implicit in lease as the discount rate,
which refers to the interest rate that makes the sum of the present value of the lessor's lease receipts and the present value of the
unguaranteed residual value equal to the sum of the fair value of the leased asset and the lessor's initial direct expenses. If the
Company is unable to determine the interest rate implicit in lease, the incremental loan interest rate shall be used as the discount rate.
The incremental loan interest rate refers to the interest rate that the Company must pay to borrow funds with similar mortgage
conditions during similar periods in order to obtain assets of similar value to the right-of-use assets under similar economic
environment. The interest rate is related to the following matters: ① the Company's own situation, that is, the group's solvency and
credit status; ② The term of the "loan", i.e. the lease term; ③ The amount of "borrowed" funds, i.e. the amount of lease liabilities;
④ "Mortgage conditions", that is, the nature and quality of the underlying assets; ⑤ Economic environment, including the
jurisdiction of the lessee, money of account, contract signing time, etc. Based on the bank loan interest rate, the Company obtains the
incremental loan interest rate by adjusting the above factors.
(2) Subsequent measurement
After the beginning date of the lease term, the Company makes subsequent measurement of the lease liabilities according to the
following principles: ① when confirming the interest of the lease liabilities, increase the book amount of the lease liabilities; ②
When paying the lease payment, reduce the book amount of the lease liabilities; ③ When the lease payment changes due to
revaluation or lease change, the book value of the lease liabilities shall be re-measured.
The Company calculates the interest expense of the lease liabilities in each period of the lease term according to the fixed periodic
interest rate and records it into the current profit and loss, except those that should be capitalized. Periodic interest rate refers to the
discount rate adopted by the Company for the initial measurement of lease liabilities, or the revised discount rate adopted by the
Company when the lease liabilities need to be remeasured according to the revised discount rate due to the change of lease payment
or lease change.
(3) Remeasurement
After the beginning date of the lease term, in case of the following circumstances, the Company shall re -measure the lease liabilities
according to the present value of the lease payment after the change, and adjust the book value of the right-of-use assets accordingly.
If the book value of the right-of-use assets has been reduced to zero, but the lease liabilities still needs to be further reduced, the
Company will record the remaining amount into the current profit and loss. ① Substantial fixed payment amount changes (in this
case, the original discount rate is adopted); ② The expected payable amount of the guaranteed residual value changes (in this case,
the original discount rate is adopted); ③ The index or rate used to determine the amount of lease payment changes (in this case, the
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revised discount rate is adopted); ④ The evaluation result of the call option changes (in this case, the revised discount rate is
adopted); ⑤ The evaluation result or actual exercise of the renewal option or termination option changes (in this case, the revised
discount rate is adopted).
31． Estimated liabilities
Any business related to contingencies such as external guarantee, pending litigation or arbitration, product quality assurance, staff
reduction plan, loss contract, restructuring obligation, environmental pollution remediation, commitment and fixed asset disposal
obligation, if meeting all of the following conditions, is recognized as a liability: the obligation is the current ob ligation undertaken
by the Company; performance of the obligation is likely to lead to the outflow of economic benefits; the amount of the obliga tion can
be reliably measured.
The estimated liabilities are initially recognized according to the best estimate number of the expenditure required to perform
relevant current obligations with consideration to the contingency related risks, uncertainty, time value of money and other factors. If
the time value of money has significant impact, the best estimate number is determined after discount of the future cash flow. The
book value of the estimated liabilities is reviewed on the balance sheet date and adjusted to reflect the current best estimate number if
there is any change.
The existence of a potential obligation for past transactions or events shall be substantiated by the occurrence or non-occurrence of
future uncertainties; the Company will disclose the potential or current obligation a as contingent liability if the performance of such
obligation is not like ly to result in the outflow of economic benefits from the Company or if the amount of such obligation cannot be
reliably measured.
32． Share-based payment
The term share-based payment refers to a transaction in which the Company grants equity instruments or undertakes
equity-instrument-based liabilities in return for services from employee or other parties. The share-based payments shall consist of
equity-settled share-based payments and cash-settled share-based payments.
The equity-settled share-based payment in return for employee services is measured at the fair value of the equity instruments
granted to the employees. The amount of such fair value, under the situation that the rights can only be exercised after the service is
finished and the set performance is achieved within the waiting period, and basing on the optimum estimation for the number of
equity instrument which exercise rights within the waiting period, will be measured according to straight-line method and counted
into relevant costs and expenses. The capital reserve will be increased correspondingly.
The share-based payment settled by cash will be measured according to the fair value of the liability confirmed basing on the shares
borne by the Company and other equity instruments. If the rights can be exercised immediately after being granted, the payment will
be counted into relevant costs or expenses at the fair value of the liabilities assumed and the liability will be increased
correspondingly. If the rights can only be exercised after the situation that service within the waiting period is completed and set
performance is achieved, the service obtained at the current period, according to the fair value amount of the liability borne by the
Company, and basing on the optimum estimation for the condition of exercising rights, will be counted into costs or expenses on each
and every balance sheet date during the waiting period, and the liability will be increased correspondingly.
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Each and every balance sheet date and settlement before relevant liability settlement, the fair value of liability will be remeasured, of
which changes occurred will be counted into the current period.
33． Income recognition principle and measurement method
The Company’s operating income mainly includes income from selling commodities, income from offering labor and transfer of
asset use right.
(1) Income recognition principle
The Company has fulfilled its contractual obligation to recognize income when the customer acquires control of the relevant goods or
services. Obtaining control of the relevant goods or services is the ability to dominate the use of the goods or provision of services
and gain almost all economic benefits from them.
The Company evaluates the contract on the contract commencement date, identifies each individual performance obligation
contained in the contract, and determines whether each individual performance obligation is performed within a certain period of
time or at a certain point in time.
If one of the following conditions is satisfied, the Company shall be deemed to have performed its performance obligation within a
certain period of time; otherwise, it shall be deemed to have performed its performance obligation at a certain time point:
1) The customer obtains and consumes the economic benefits arising from the Company’s performance at the same time of the
Company’s performance.
2) The customer can control the goods under construction during the Company’s performance.
3) The goods produced by the Company during the performance are of irreplaceable use, and the Company shall be entitled to
receive payment for the accumulated part of the performance completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the income in ac cordance
with the performance progress during that period. If the performance schedule cannot be reasonably determined and the cost already
incurred by the Company is expected to be compensated, the Company shall recognize the income according to the cost already
incurred until the performance schedule can be reasonably determined.
For performance obligations performed at a certain time point, the Company recognizes income at the time point when the customer
acquires control of the relevant goods or services. In determining whether the customer has acquired control of goods or services, the
Company considers the following indications:
1) The Company has the current collection right for the goods or services.
2) The Company has transferred legal ownership to the goods to the customer.
3) The Company has transferred the goods in kind to the customer.
4) The Company has transferred the main risks and rewards on the property in the goods to the customer;
5) The customer has accepted the goods or services, etc.
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The Company's right to receive consideration for the transfer of goods or services to the customer is listed as the contract assets, and
the contract assets are depreciated on the basis of expected credit losses. The rights that the Company owns and unconditionally to
collect consideration from the customer are listed as receivables. The obligations of the Company to transfer goods or services to
customers for which consideration has been received or receivable are listed as contractual liabilities.
(2) Income measurement principle
1) If the contract contains two or more performance obligations, the Company shall, at the beginning of the contract, apportion the
transaction price to each individual performance obligation according to the relative proportion of the individual selling price of
the goods or services committed by each individual performance obligation, and measure the income according to the
transaction price apportioned to each single performance obligation.
2) The transaction price means the amount of consideration that the Company is expected to be entitled to collect for the transfer
of goods or services to the customer, excluding payments collected on behalf of third parties. The transaction price recognized
by the Company does not exceed the amount of accumulated recognized income which is highly unlikely to be materially
reversed when the relevant uncertainty is eliminated. The amount expected to be returned to the customer is not included in the
transaction price as a liability.
3) If there is a material financing component in the contract, the Company shall determine the transaction price based on the
amount payable in cash when the customer acquires control of the goods or services. The difference between the transaction
price and the contract consideration shall be amortized by the effective interest method during the contract period. On the
commencement date of the contract, if the Company expects that the interval between the customer's acquisition of control of
the goods or services and the customer's payment of the price will not exceed one year, the material financing elements in the
contract will not be considered.
(3) Specific methods of revenue recognition
1) Revenue recognized on time
The Company's sales of electrical products, accessories and materials belong to the performance obligation to be performed at a
certain point in time.
Recognition conditions of income from domestic goods: the Company has delivered the products to the customers according to the
contract, the customers have received the goods, the payment for goods has been recovered or the receipt voucher has been obtained,
and the relevant economic benefits are likely to flow into the Company, the main risks and rewards of the ownership of the goods
have been transferred, and the legal ownership and control of the goods have been transferred.
Recognition conditions of income from export goods: the Company has declared the products to leave the port according to the
contract, obtained the bill of lading, recovered the payment for goods or obtained the receipt voucher, and the relevant economic
benefits are likely to flow into the Company, the main risks and rewards of the ownership of the goods have been transferred, and the
legal ownership and control of the goods have been transferred.
2) Revenue recognized according to performance progress
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The Company's technical service income and business contracts between operating leases and customers belong to the performanc e
obligations performed within a certain period of time, and the income shall be recognized according to the performance progress.
34． Government subsidies
The Company's government subsidies include financial allocations. The asset related government subsidies re fer to the government
subsidies obtained by the Company and used for acquisition or construction or for formation of long-term assets in other ways; the
income related government subsidies refer to the government subsidies other than the asset related government subsidies. The
government subsidies without subsidy objects specified in government documents shall be judged by the Company according to the
above principle, or classified into income related government subsidies as a whole if it is difficult to ju dge.
The government subsidies as the monetary assets are measured according to the amount received. For subsidies allocated in
accordance with fixed quota standards, or if there is evidence at the end of year that the Company can meet relevant conditions
stipulated in the financial support policy and can be expected to receive the financial support fund, the government subsidies are
measured according to receivables. The government subsidies not as the monetary assets are measured according to the fair value, or
measured according to the nominal amount (RMB 1 yuan) if the fair value cannot be obtained reliably.
The government subsidies related to assets are recognized as deferred income and equally distributed and charged to the curre nt
profit and loss in the service life of relevant assets.
If the related asset is sold, transferred, scrapped or damaged before the end of the useful life, the deferred income balance not yet
distributed is transferred in the profits and losses in the period of assets disposal.
The income related government subsidies, if used to compensate for related costs or losses in su bsequent periods, are recognized as
the deferred income and charged to the current profit and loss when related costs or losses are recognized. The government s ubsidies
pertinent to the daily activities of the Company shall be included in other income or used to offset relevant costs and expenses
according to the substance of the economic business. The government subsidies irrelevant with the daily activities of the Company
shall be included in non-operating revenues and expenditures.
Where the Company has obtained discount interest on preferential loans, it shall distinguish between the two situations in which the
financial department allocates discount interest funds to the lending bank and the financial department directly allocates discount
interest funds to the Company, and conduct accounting treatment according to the following principles:
(1) Where the financial department allocates the discount interest funds to the lending bank, and the lending bank provides the loan
to the Company at the preferential policy interest rate, the Company shall take the actual amount of the loan received as the entry
value of the loan, and calculate the relevant borrowing costs according to the loan principal and the preferential policy interest rate.
(2) Where the financial department directly allocates discount interest funds to the Company, the Company will write down the
corresponding discount interest against the relevant borrowing costs.
If the government subsidy confirmed by the Company needs to be returned, the accounting treatment shall be carried out in
accordance with the following provisions in the current situation of the return:
1) The book value of related assets is adjusted if it is offset upon initial recognition.
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2) For those with related deferred income, the book balance of related deferred income is written down and the excess is
accounted into the current profits and losses.
3) In the other cases, they are directly accounted into the current profits and losses.
35． Deferred income tax assets and deferred income tax liabilities
The Company’s deferred income tax assets and deferred income tax liabilities are calculated and recognized according to the
difference (temporary difference) between the tax base and book value of the assets and liabilities. For the deductible loss that can be
carried forward to the subsequent year according to the tax law, the corresponding deferred income tax assets are recognized. For the
deductible temporary differences related to the initial recognition of the goodwill, the corresponding deferred income tax liabilities
are not recognized. For the temporary differences related to the initial recognition of the assets or liabilities incurred in the
transaction not for business combination that will not affect the accounting profits and income tax pa yable (or deductible loss), the
corresponding deferred income tax assets and liabilities are not recognized. The deferred income tax assets and deferred income tax
liabilities are measured on the balance sheet date according to the applicable tax rate in the period of expected recovery of relevant
assets of liquidation of relevant liabilities.
The Company recognizes the deferred income tax assets by deductible temporary differences, within the limit of the income tax
payable that may be obtained in the future and used to offset the deductible temporary differences, the deductible loss and tax
deduction.
36． Lease
(1) Identification of lease
Lease refers to a contract in w hich the lessor transfers the right to use assets to the lessee for consideration within a certain period of
time. On the commencement date of the contract, the Company evaluates whether the contract is a lease or includes a lease. If a party
to the contract assigns the right to control the use of one or more identified assets within a certain period of time in exchange for
consideration, the contract is a lease or includes a lease. In order to determine whether the contract assigns the right to c ontrol the use
of the identified assets within a certain period of time, the Company evaluates whether the customers in the contract is entitled to
obtain almost all the economic benefits arising from the use of the identified assets during the use period, and to dominate the use of
the identified assets during the use period.
If the contract contains multiple separate leases at the same time, the Company will split the contract and conduct accounting
treatment for each separate lease. If the contract contains both leased and non-leased parts, the Company will split the leased and
non-leased parts for accounting treatment.
(2) The Company as the lessee
1) Lease recognition
On the beginning date of the lease term, the Company recognizes the right-of-use assets and lease liabilities. See Note IV "23.
Right-of-use assets" and "30. Lease liabilities" for the recognition and measurement of right-of-use assets and lease liabilities.
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2) Lease change
Lease change refers to the change of lease scope, lease consideration and lease term beyond the terms of the original contract,
including adding or terminating the right to use one or more leased assets, extending or shortening the lease term specified in the
contract, etc. The effective date of the lease change refers to the date when both parties reach an agreement on the lease change.
If the lease changes and meets the following conditions, the Company will treat the lease change as a separate lease for accounting:
① the lease change expands the lease scope or extends the lease term by adding the right to use one or more leased assets; ② The
increased consideration is equivalent to the amount of the separate price of the extended part of the lease scope or the exte nded part
of the lease term as adjusted according to the conditions of the contract.
If the lease change is not treated as a separate lease, on the effective date of the lease change, the Company will apportion the
consideration of the changed contract in accordance with the relevant provisions of the lease standards and re-determine the lease
term after the change; The revised discount rate is adopted to discount the changed lease payment to re -measure the lease liabilities.
When calculating the present value of the lease payment after the change, the Company adopts the interest rate implicit in lease
during the remaining lease period as the discount rate; If the interest rate implicit in lease cannot be determined for the r emaining
lease period, the Company will adopt the lessee's incremental loan interest rate on the effective date of the lease change as the
discount rate. With regard to the impact of the above adjustment of lease liabilities, the Company shall distinguish the following
circumstances for accounting treatment: ① if the lease scope is reduced or the lease term is shortened due to the lease change, the
lessee shall reduce the book value of the right-of-use assets, and include the relevant gain or loss of lease under partial or complete
termination into the current profit and loss. ② If the lease liabilities are re-measured due to other lease changes, the lessee shall
adjust the book value of the right-of-use assets accordingly.
3) Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term lease with a lease term of no more
than 12 months and low-value asset lease with a lower value when the single leased asset is a brand-new asset. The Company will
record the lease payment of short-term lease and low-value asset lease into the relevant asset cost or current profit and loss according
to the straight-line method or other systematic and reasonable methods during each period of the lease term.
(3) The Company as the lessor
On the basis that (1) the evaluated contract is a lease or includes a lease, the Company, as the lessor, divides the lease into financial
lease and operating lease on the commencement date of the lease.
If a lease substantially transfers almost all the risks and rewards related to the ownership of the leased assets, the lessor classif ies
such lease as a financial lease, and other leases other than financial leases are classified as operating leases.
If a lease is under one or more of the following circumstances, the Company usually classifies it as a financial lease: ① when the
lease term expires, the ownership of the leased asset is transferred to the lessee; ② The lessee has the option to purchase the leased
asset, and the purchase price is low enough compared with the fair value of the leased asset when the option is expected to be
exercised, so it can be reasonably determined that the lessee will exercise the option on the commencement date of the lease; ③
Although the ownership of the asset is not transferred, the lease term accounts for most of the service life of the leased asset (no less
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than 75% of the service life of the leased asset); ④ On the commencement date of the lease, the present value of the lease receipts is
almost equal to the fair value of the leased asset (no less than 90% of the fair value of the leased asset) ; ⑤ The property of the
leased asset is special. If no major transformation is made, only the lessee can use it. If one or more of the following signs exist in a
lease, the Company may also classify it as a financial lease: ① if the lessee cancels the lease, the loss to the lessor caused by the
cancellation of the lease shall be borne by the lessee; ② The gains or losses arising from the fluctuation of the fair value of the
residual value of assets belong to the lessee; ③ The lessee has the ability to continue the lease for the next period at a rent far below
the market level.
1) Lease accounting treatment
Initial measurement
On the beginning date of the lease term, the Company recognizes the financial lease receivables for the financial lease and terminates
the recognition of the financial lease assets. When the Company initially measures the finance lease receivables, the net amount of
the lease investment is taken as the entry value of the finance lease receivables.
The net amount of the lease investment is the sum of the unguaranteed residual value and the present value of the lease receipts not
received on the beginning date of the lease term discounted at the interest rate implicit in lease. Lease receipts refer to the amount
that the lessor should collect from the lessee due to the assignment of the right to use the leased assets during the lease term,
including: ① fixed payment and substantial fixed payment to be paid by the lessee. If there is lease incentive, the amount related to
lease incentive shall be deducted from it; ② The amount of variable lease payments depending on the index or ratio, which is
determined at the initial measurement according to the index or ratio on the beginning date of the lease term; ③ The exercise price
of the call option, provided that it is reasonably determined that the lessee will exercise the option; ④ The amount to be paid by the
lessee to exercise the option to terminate the lease, provided that the lease term reflects that the lessee will exercise the termination
option; ⑤ The guaranteed residual value provided by the lessee, the party related to the lessee and an independent third party with
the financial ability to perform the guarantee obligation to the lessor.
Subsequent measurement
The Company calculates and recognizes the interest income of each period within the lease term according to the fixed periodic
interest rate. The periodic interest rate refers to the implicit discount rate used to determine the net investment of the lease (in the case
of sublease, if the interest rate implicit in lease of the sublease cannot be determined, the discount rate of the original lease shall be
adopted (adjusted according to the initial direct expenses related to the sublease)), or the change of the financial lease is not
accounted for as a separate lease, and if the change takes effect on the commencement date of the lease, the revised discount rate as
determined according to relevant regulations is adopted when the lease will be classified as financial lease conditions.
Accounting treatment of lease change
If the financial lease changes and meets the following conditions, the Company will treat the change as a separate lease for
accounting: ① the change expands the lease scope by adding the right to use one or more leased assets; ② The increased
consideration is equivalent to the amount of the separate price of the extended part of the lease scope as adjusted according to the
conditions of the contract.
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If the change of a financial lease is not accounted for as a separate lease and meets the conditions that if the change takes effect on
the commencement date of the lease and the lease will be classified as an operating lease, the Company will account for it as a new
lease from the effective date of the lease change, and take the net investment of the lease before the effective date of the lease change
as the book value of the leased asset.
2) Accounting treatment of lease
Treatment of rent
During each period of the lease term, the Company adopts the straight-line method / other systematic and reasonable methods to
recognize the lease receipts of operating lease as rental income.
Incentives provided
If the rent-free period is provided, the Company will apportion the total rent according to the straight-line method / other reasonable
methods in the whole lease period without deducting the rent-free period, and the rent income shall be recognized during the rent-free
period. If the Company bears some expenses of the lessee, the expenses shall be deducted from the total rental income and
apportioned within the lease term according to the balance of rental income after deduction.
Initial direct costs
The initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost of the
underlying assets of the lease and included in the current profit and loss by stages on the same recognition basis as the rental income
during the lease term.
Depreciation
For the fixed assets in the operating leased assets, the Company adopts the depreciation policy of similar assets for depreciation;
Other operating leased assets are amortized in systematic and reasonable methods.
Variable lease payments
The variable lease payments obtained by the Company related to operating lease that are not included in the lease receipts are
included in the current profit and loss when actually incurred.
Change of operating lease
If the operating lease is changed, the Company will treat it as a new lease for accounting since the effective date of the change. The
amount of advance receipts or lease receivables related to the lease before the change is regarded as the amount of new lease receipts.
37． Other significant accounting policy and accounting estimate
When preparing the financial statements, the management of the Company is required to use estimates and assumptions, which will
have an impact on the application of accounting policies and the amount of assets, liabilities, income and expenses. The actual
situation may differ from these estimates. The management of the Company continuously evaluates the judgment of key assumptions
and uncertainties involved in the estimates. The impact of changes in accounting estimates shall be recognized in the current and
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future periods of the changes.
The following accounting estimates and key assumptions have significant risks that will lead to major adjustments to the book value
of assets and liabilities in the future periods:
(1) Financial assets impairment
The expected credit loss model is adopted to evaluate the impairment of financial instruments in the financial assets impairment,
which requires major judgment and estimates and requires considering all reasonable and substantiated information, including
forward-looking information. In making such judgments and estimates, the Company deduces the expected changes of the debtor's
credit risks based on historical data combined with economic policies, macroeconomic indicators, industrial risks, external market
environment, technical environment, changes in customer conditions and other factors.
(2) Provision for inventory impairment
Basis for determining the net realizable value of inventories: the net realizable value of merchandise inventory, materials f or sale and
other merchandise inventories directly used for sale is recognized by the amount of the estimated sale price of the inventories
subtracted by the estimated selling expenses and related taxes; For the inventories held to perform the sales contract or labor contract,
the net realizable value is calculated on the basis of contract price; If the number of the inventories held by the enterprise is greater
than the quantity ordered in the sales contract, the net realizable value of the excessive inventories is ca lculated on the basis of
general sale price.
The method for inventory falling price reserves: it is priced according to the lower of the year-end inventory and the net realizable
value. At the end of the period, on the basis of a comprehensive inventory of the inventories, the inventory falling price reserves are
withdrawn for the part of its cost is expected to be non-recoverable due to the inventory damage, full or partial obsolescence or
selling price below the cost.
If the influence factors writing down the inventory value before have disappeared, resulting in the net realizable value of the
inventories higher than the book value, the amount written down shall be restored and reversed within the originally withdrawn
amount of inventory falling price reserves and the amount reversed is included in current profit and loss.
(3) Accounting estimates of provision for impairment of goodwill
The Company conducts impairment test on goodwill every year. The recoverable amount of asset group or the combination of asse t
groups containing goodwill is the present value of its estimated future cash flows, which need to be calculated using accounting
estimates.
If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the combination of
asset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Company needs to withdraw
impairment provision for the increase of goodwill.
If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher than the
current gross margin ratio, the Company needs to withdraw impairment provision for the increase of goodwill.
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If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company cannot
reverse the originally accrued goodwill impairment loss.
(4) Accounting estimates of impairment provisions for fixed assets
The Company conducts impairment test on fixed assets such as houses, buildings, machinery and equipment with signs of
impairment on the balance sheet date. The recoverable amount of fixed assets is the higher of the present value of its estimated future
cash flows and the net value of the fair value of the assets minus the disposal expe nse, which need to be calculated using accounting
estimates.
If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the combination of
asset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Company needs to withdraw
impairment provision for the increase of fixed assets.
If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher than the
current gross margin ratio, the Company needs to withdraw impairment provision for the increase of fixed assets.
If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company cannot
reverse the originally accrued impairment provisions for fixed assets.
(5) Accounting estimates for deferred income tax asset recognition
The estimation of deferred income tax assets requires an estimate of the taxable income and applicable tax rate of each year in the
future. The realization of deferred income tax assets depends on whether the Group is likely to obtain sufficient taxable income in the
future. Changes in future tax rates and the reversal time of temporary differences may also affect income tax expenses (income) and
the balance of deferred income tax. Changes in the above estimates may result in significant adjustments to deferred income tax.
(6) Useful life of fixed assets and intangible assets
The Company shall review the expected service life of fixed assets and intangible assets at least at the end of each year. The
estimated service life is determined by the management based on the historical experience of similar assets, with reference to the
estimates commonly used in the same industry and in combination with the expected technical updates. When there are significant
changes in previous estimates, the depreciation expenses and amortization expenses for the future period shall be adjusted
accordingly.
38． Significant accounting policy and accounting estimate change
(1) Changes in significant accounting policies
Content and reasons of changes in accounting policies Approval procedures
On December 7, 2018, the Ministry of Finance issued the “Notice on Revising and Issuing
Accounting Standards for Enterprises No. 21 - Leases” (C.K. [2018] No. 35) (hereinafter Resolution of the 5th Meeting of
referred to as the “new lease standards”). The Company has implemented the new lease the Fifth Board of Directors
standards since January 1, 2021.
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(2) Significant accounting estimate change
The Company has no significant accounting estimate change in the current year.
(3) Adjustment of relevant items in financial statements at the beginning of the implementation year as a result of first
implementation of new lease standards from 2021
The Company has implemented the new lease standards since January 1, 2021. The retained earnings and other relevant items in the
financial statements at the beginning of the year in which the standards are first implemented shall be adjusted according to the
cumulative influence number during the first implementation of the standards, and the information of comparable periods shall not be
adjusted. For the operating lease before the first implementation date, the Company measures the lease liabilities at the pre sent value
discounted by the lessee's incremental borrowing rate on the first implementation date according to the remaining lease payment on
the first implementation date, and makes necessary adjustments according to the amount equal to the lease liabilities an d prepaid rent
for each lease. The affected report items and amounts are as follows:
1) Consolidated Balance Sheet
Item December 31, 2020 January 1, 2021 Adjusted figure
Right-of-use assets 15,374,577.46 15,374,577.46
Lease liabilities 14,705,038.35 14,705,038.35
Non-current liabilities due within a year 684,535.10 684,535.10
Notes to the adjustment of the consolidated balance sheet: the consolidated balance sheet increases the right-of-use assets by
RMB 15,374,577.46, the lease liabilities by RMB 14,705,038.35 and the non-current liabilities due within a year by RMB
684,535.10.
2) Balance sheet of parent company
The implementation of the new lease standards has no impact on the parent company’s financial statements on January 1, 2021
VI. Tax
1. Main tax categories and tax rates
Tax category Taxation basis Tax rate
Income from selling commodities 13%
Added value tax Technical service income 6%
Income from house lease 5%
Urban maintenance and construction tax Turnover tax payable 7%
Education surcharge Turnover tax payable 3%
Surcharge for local education Turnover tax payable 2%
Housing property tax 70% of original value of the property 1.2%
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Rental income 12%
Land use tax Total land area 5-10 yuan/m2
Corporate income tax Income tax payable 15%, 5%, 20%
If there are taxpayers with different enterprise income tax rates, the disclosure statement shall present
Name of taxpayer Income tax rate
Hangzhou ROBAM Appliances Co., Ltd. 15%
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. 15%
Zhejiang Cooking Future Technology Co., Ltd. 25%
Beijing ROBAM Electric Appliance Sales Co., Ltd. 25%
Shanghai ROBAM Electric Appliance Sales Co., Ltd. 25%
Hangzhou Mingqi Electric Co., Ltd. 25%
De Dietrich Household Appliances Trading (Shanghai) Co.,
25%
Ltd.
Hangzhou ROBAM Fuchuang Investment Management Co.,
20%
Ltd.
2. Tax preference
(1) Preferential policies for income tax
On December 1, 2020, the Science Technology Department of Zhejiang Province, Zhejiang Provincial Department of Finance,
Zhejiang Provincial Tax Service of State Taxation Administration and Zhejiang Local Taxation Bureau jointly issued a hig h-tech
enterprise certificate (No. GR202033007142) and the Company passed the high-tech enterprise identification for 3 years. According
to relevant regulations, after passing the high-tech enterprise identification, the Company can enjoy the relevant preferential policies
of the state on high-tech enterprises for three consecutive years (i.e., the income tax preference period from January 1, 2020 to
December 31, 2022), and the enterprise income tax shall be levied at the rate of 15%.
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. (Hereinafter referred to as Shengzhou Kinde), a subsidiary of the Company,
obtained the high-tech enterprise certificate (No. GR201933002261) jointly issued by the Science Technology Department of
Zhejiang Province, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service of State Taxation Administration
on December 4, 2019 and passed the high-tech enterprise identification. The Company can enjoy the relevant preferential policies of
the state on high-tech enterprises for three consecutive years (i.e., the income tax preference period from January 1, 2019 to
December 31, 2021), and the enterprise income tax shall be levied at the rate of 15%.
According to the Announcement [2021] No. 8 of the State Taxation Administration, Hangzhou ROBAM Fuchuang Investment
Management Co., Ltd., a subsidiary of the Company, includes the part of the annual taxable income tax of small meager-profit
enterprises that does not exceed 1 million yuan into the taxable income at a reduced rate of 12.5%, and the enterprise income tax
shall be paid at the rate of 20%.
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(2) Preferential policies for added-value tax
According to the Notice of the State Taxation Administration of the Ministry of Finance on the Value-added Tax Policy for Software
Products (C.S. [2011] No. 100), the Company's embedded software sales products enjoy the value-added tax refunded as soon as they
are collected.
VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: yuan
Item Ending balance Beginning balance
Cash on hand 80,944.99 110,770.11
Bank deposit 3,718,304,060.33 3,885,907,031.42
Other monetary capital 83,816,341.23 35,034,898.78
Total 3,802,201,346.55 3,921,052,700.31
Other description
Note: Other monetary capital at the year end is 83,816,341.23 yuan, of which the L/C deposit of 49,905,291.59 yuan, bill acceptance
deposit of 32,307,234.61 are limited funds, Alipay balance of 1,577,495.89 yuan and Wechat balance of 26,319.14 yuan are
non-limited funds that can be withdrawn at any time. Use of restricted monetary funds
Item Year-end balance Year-beginning balance
Letter of guarantee and bill acceptance 82,212,526.20 34,956,186.75
security deposit
Total 82,212,526.20 34,956,186.75
2. Trading financial assets
Unit: yuan
Item Ending balance Beginning balance
Financial assets measured with fair value and with the changes included
2,872,312,500.00 2,352,000,000.00
in current profit and loss
Where:
Including: Bank financial products 2,872,312,500.00 2,352,000,000.00
Where:
Total 2,872,312,500.00 2,352,000,000.00
3. Derivative financial assets
N/A
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4. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
Item Ending balance Beginning balance
Bank acceptance bill 862,581,158.56 850,950,227.31
Trade acceptance 467,612,736.26 981,751,215.77
Total 1,330,193,894.82 1,832,701,443.08
Unit: yuan
Ending balance Beginning balance
Provision for bad
Book balance Book balance Provision for bad debt
debt
Category Book Book
Accruin
Accruing
Proporti g value Proportio value
Amount Amount Amount Amount proportio
on proporti n
n
on
Notes receivable of
269,463, 224,066, 45,396,9 11,176,8 7,823,792.3 3,353,05
provision for bad debt 17.09% 83.15% 0.59% 70.00%
729.35 803.50 25.85 46.26 8 3.88
by single item
Where:
Notes receivable of
1,307,01 22,221,8 1,284,79 1,887,83 58,483,316. 1,829,34
provision for bad debt 82.91% 1.70% 99.41% 3.10%
8,853.73 84.76 6,968.97 1,706.05 85 8,389.20
by combination
Where:
Including: banker's 862,581, 862,581, 850,950, 850,950,
54.72% 44.81%
acceptance bill 158.56 158.56 227.31 227.31
Commercial 444,437, 22,221,8 422,215, 1,036,88 58,483,316. 978,398,
28.19% 5.00% 54.60% 5.64%
acceptance bill 695.17 84.76 810.41 1,478.74 85 161.89
1,576,48 246,288, 1,330,19 1,899,00 66,307,109. 1,832,70
Total 100.00% 15.62% 100.00% 3.49%
2,583.08 688.26 3,894.82 8,552.31 23 1,443.08
Provision for bad debt by single item:
Unit: yuan
Ending balance
Name Accruing Reasons for
Book balance Provision for bad debt
proportion provision
Group 1 189,868,003.32 189,868,003.32 100.00% Debt default
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Group 2 43,036,416.09 8,607,283.21 20.00% Debt extension
It is not
Group 3 18,363,143.49 12,854,200.48 70.00% expected to
recover it all
It is not
Group 4 5,547,669.08 3,883,368.36 70.00% expected to
recover it all
It is not
Group 5 5,274,139.91 3,691,897.95 70.00% expected to
recover it all
It is not
Group 6 3,135,636.10 2,194,945.28 70.00% expected to
recover it all
It is not
Group 7 2,888,253.86 2,021,777.71 70.00% expected to
recover it all
It is not
Group 8 1,350,467.50 945,327.19 70.00% expected to
recover it all
Total 269,463,729.35 224,066,803.50 -- --
Provision for bad debt by single item:
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion Reasons for provision
Banker's acceptance
862,581,158.56
bill combination
Commercial
acceptance bill 444,437,695.17 22,221,884.76 5.00%
combination
Total 1,307,018,853.73 22,221,884.76 -- --
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Canceled
Category Beginning balance Recovered or Ending balance
Provision after Other
reversed
verification
Commercial
66,307,109.23 179,981,579.03 246,288,688.26
acceptance bill
Total 66,307,109.23 179,981,579.03 246,288,688.26
Where the amount of bad debt provision recovered or transferred back is important:
□ Applicable √ Not applicable
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(3) Notes receivable endorsed or discounted by the Company at the end of the period and not expired yet
on the balance sheet date
Unit: yuan
Amount with recognition terminated at Amount with recognition not terminated
Item
the end of the period at the end of the period
Bank acceptance bill 24,500,000.00
Trade acceptance 2,628,497.99
Total 24,500,000.00 2,628,497.99
(4) Notes transferred to accounts receivable by the Company at the end of the period due to failure of the
drawer to perform
Unit: yuan
Amount transferred to accounts receivable at the end of the
Item
period
Trade acceptance 969,264,960.11
Total 969,264,960.11
5. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category Book
Accruing
Proportio Accruing Book value
Amount Amount proportio value Amount Proportion Amount
n proportion
n
Accounts receivable of
630,075,0 553,584,0 76,490,96 15,164,08 12,320,94
provision for bad debt 28.04% 87.86% 1.40% 81.25% 2,843,140.36
52.06 90.07 1.99 0.60 0.24
by single item
Accounts receivable of
1,617,347 96,145,24 1,521,201, 1,065,680, 60,287,54 1,005,392,80
provision for bad debt 71.96% 5.94% 98.60% 5.66%
,143.15 4.24 898.91 355.15 9.11 6.04
by combination
Accounts receivable of
provision for bad debt 1,617,347 96,145,24 1,521,201, 1,065,680, 60,287,54 1,005,392,80
71.96% 5.94% 98.60% 5.66%
by expected credit loss ,143.15 4.24 898.91 355.15 9.11 6.04
combination based on
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aging features
2,247,422 649,729,3 1,597,692, 1,080,844, 72,608,48 1,008,235,94
Total 100.00% 28.91% 100.00% 6.72%
,195.21 34.31 860.90 435.75 9.35 6.40
Provision for bad debt by single item:
Unit: yuan
Ending balance
Name Provision for bad Accruing
Book balance Reasons for provision
debt proportion
Group 1 470,382,848.12 470,382,848.12 100.00 Debt default
Group 2 59,399,471.06 11,879,894.24 20.00 Debt extension
It is not expected to
Group 3 28,751,367.91 20,125,957.56 70.00
recover it all
It is not expected to
Group 4 1,088,119.72 761,683.82 70.00
recover it all
It is not expected to
Group 5 15,877,599.20 11,114,319.42 70.00
recover it all
It is not expected to
Group 6 5,149,548.81 3,604,684.17 70.00
recover it all
It is not expected to
Group 7 6,093,423.82 4,265,396.62 70.00
recover it all
It is not expected to
Group 8 2,341,043.43 1,638,730.40 70.00
recover it all
It is not expected to
Group 9 25,413,389.42 17,789,372.60 70.00
recover it all
It is not expected to
Group 10 11,010,781.52 7,707,547.07 70.00
recover it all
Group 11 1,773,645.05 1,773,645.05 100.00 Debt default
It is expected that there
Summary of other companies 2,793,814.00 2,540,011.00 90.92
is recovery risk
Total 630,075,052.06 553,584,090.07 -- --
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combination ba sed on
aging features
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 1,402,316,357.02 70,115,084.26 5.00%
1~2 years 195,407,077.04 19,540,707.71 10.00%
2~3 years 14,099,627.70 2,819,925.54 20.00%
3~4 years 3,389,682.32 1,694,841.17 50.00%
4~5 years 798,567.54 638,854.03 80.00%
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More than 5 years 1,335,831.53 1,335,831.53 100.00%
Total 1,617,347,143.15 96,145,244.24 --
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 2,014,007,288.17
Within 1 year (including 1 year) 2,014,007,288.17
1~2 years 208,993,312.07
2~3 years 14,581,303.06
More than 3 years 9,840,291.91
3~4 years 5,529,931.39
4~5 years 823,283.54
More than 5 years 3,487,076.98
Total 2,247,422,195.21
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Beginning
Category Recovered or Canceled after Ending balance
balance Provision Other
reversed verification
Provision for bad
debt of accounts 72,608,489.35 579,457,824.76 1,034,992.00 1,301,987.80 649,729,334.31
receivable
Total 72,608,489.35 579,457,824.76 1,034,992.00 1,301,987.80 649,729,334.31
(3) Accounts receivable actually written off at the current period
Unit: yuan
Item Write-off amount
Provision for bad debt of accounts receivable 1,301,987.80
(4) Receivables with top 5 ending balances by debtor
Unit: yuan
Unit name Ending balance of Proportion in total ending balance of Ending balance of
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accounts receivable accounts receivable bad debt provision
Unit 1 654,095,507.84 29.10% 40,066,197.26
Unit 2 299,560,496.54 13.33% 299,560,496.54
Unit 3 95,125,955.20 4.23% 95,125,955.20
Unit 4 87,226,120.73 3.88% 4,361,306.04
Unit 5 92,557,284.90 4.12% 4,627,864.25
Total 1,228,565,365.21 54.66%
6. Receivables financing
N/A
7. Advances to suppliers
(1) Presentation of advances to suppliers by aging
Unit: yuan
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 129,823,235.88 98.98% 68,516,272.50 98.04%
1~2 years 1,308,725.59 1.00% 1,373,126.97 1.96%
2~3 years 30,069.48 0.02%
Total 131,162,030.95 -- 69,889,399.47 --
The total amount of advances to suppliers with top 5 ending balances by prepayment obje ct in the current year was 80,310,932.31
yuan, accounting for 61.23% of total number of ending balance of advances to suppliers.
8. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Other receivables 73,487,381.46 56,589,791.38
Total 73,487,381.46 56,589,791.38
1) Other receivables classified by nature
Unit: yuan
Nature of payment Ending book balance Beginning book balance
Deposit and margin 48,646,642.67 39,954,577.27
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Collection by third party 39,389,486.99 20,064,674.31
Imprest 2,785,329.49 4,326,156.43
Withheld amount 3,224,265.49 2,740,994.81
Other 57,881.26 3,306,429.16
Total 94,103,605.90 70,392,831.98
2) Provision for bad debt
Unit: yuan
Stage 1 Stage 2 Stage 3
Provision for bad Expected credit losses Expected credit loss for the Expected credit loss for the
Total
debt over the next 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on January
13,803,040.60 13,803,040.60
01, 2021
Balance on January
1, 2021 in current —— —— —— ——
period
Withdrawn in
7,095,025.28 7,095,025.28
current period
Canceled after
verification in 281,841.44 281,841.44
current period
Balance on
20,616,224.44 20,616,224.44
December 31, 2021
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 62,712,060.79
Within 1 year (including 1 year) 62,712,060.79
1~2 years 6,095,331.29
2~3 years 4,185,028.62
More than 3 years 21,111,185.20
3~4 years 3,802,805.30
4~5 years 15,878,500.00
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More than 5 years 1,429,879.90
Total 94,103,605.90
3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recovered or Canceled after Ending balance
Provision Other
reversed verification
Provision for bad debt of
13,803,040.60 7,095,025.28 281,841.44 20,616,224.44
other receivables
Total 13,803,040.60 7,095,025.28 281,841.44 20,616,224.44
4) Other receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total other Ending balance of
Unit name Nature of payment Ending balance Aging
ending balance receivable bad debt provision
Collection by third
0~5
Unit 1 party, unit security 17,510,849.30 18.61% 943,042.47
years
deposit
Unit security 4~5
Unit 2 14,778,000.00 15.70% 11,822,400.00
deposit years
Collection by third Within
Unit 3 9,647,377.56 10.25% 482,368.88
party 1 year
Collection by third
0~2
Unit 4 party, unit security 7,733,207.76 8.22% 414,160.39
years
deposit
Within
Unit 5 Withheld amount 2,643,369.63 2.81% 132,168.48
1 year
Total -- 52,312,804.25 -- 55.59% 13,794,140.22
9. Inventory
Does the Company need to follow the disclosure requirements of real estate industry
No
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(1) Inventory classification
Unit: yuan
Ending balance Beginning balance
Inventory falling Inventory falling
price reserves or price reserves or
provision for provision for
Item
Book balance impairment of Book value Book balance impairment of Book value
contract contract
performance performance
costs costs
Raw materials 161,795,174.65 161,795,174.65 90,099,485.06 90,099,485.06
Work in process 116,573,107.77 116,573,107.77 56,669,379.52 56,669,379.52
Merchandise
529,957,331.64 28,819,579.60 501,137,752.04 356,798,655.96 31,299,857.11 325,498,798.85
inventory
Consumptive
23,495,275.67 23,495,275.67 18,026,823.98 18,026,823.98
biological assets
Contract
48,844,764.12 48,844,764.12
performance cost
Semi-finished
products shipped 971,605,585.98 51,220,027.98 920,385,558.00 895,794,857.43 895,794,857.43
in transit
Total 1,852,271,239.83 80,039,607.58 1,772,231,632.25 1,417,389,201.95 31,299,857.11 1,386,089,344.84
(2) Inventory falling price reserves and provision for impairment of contract performance costs
Unit: yuan
Amount increased in current period Amount decreased in current period
Beginning
Item Reversed or Ending balance
balance Provision Other Other
written off
Merchandise
31,299,857.11 1,412,697.82 3,892,975.33 28,819,579.60
inventory
Semi-finished
products shipped 51,220,027.98 51,220,027.98
in transit
Total 31,299,857.11 52,632,725.80 3,892,975.33 80,039,607.58
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10. Other current assets
Unit: yuan
Item Ending balance Beginning balance
Pending deduct VAT on purchase 3,442,185.74 667,378.56
Prepaid tax 668,243.42
Total 4,110,429.16 667,378.56
11. Long-term equity investment
Unit: yuan
Increase or decrease in current period
Investm
Balance
ent Declar
of
gains ed
Beginnin Adjustmen Ending impairm
Capita and Chan payme Provisio
Invested g balance Further t of other balance ent
l losses ges in nt of n for Oth
unit (book investme comprehen (book provisio
reducti recogniz other cash impairm er
value) nt sive value) n at the
on ed by equity divide ent
income end of
the nds or
period
equity profits
method
I. Cooperative enterprise
De
Dietrich
Trade 3,452,76 208,930. 3,661,70
(Shangha 9.59 44 0.03
i) Co.,
Ltd.
3,452,76 208,930. 3,661,70
Subtotal
9.59 44 0.03
II. Joint venture
Zhejiang
Tingshuo
Brand
Operatio 2,000,00 -256,57 1,743,42
n 0.00 0.12 9.88
Manage
ment
Co., Ltd.
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2,000,00 -256,57 1,743,42
Subtotal
0.00 0.12 9.88
3,452,76 2,000,00 -47,639. 5,405,12
Total
9.59 0.00 68 9.91
12. Other equity instrument investments
Unit: yuan
Item Ending balance Beginning balance
Suzhou Industrial Park Ruican Investment
100,000,000.00
Enterprise (limited partnership)
Shanghai MXCHIP Information
2,116,023.22 2,116,023.22
Technology Co., Ltd.
Total 2,116,023.22 102,116,023.22
Separate disclosure of the current period of non-transactional equity instruments
Unit: yuan
Cause for
Causes for
Amount of other designation to
carryforward
Recognized comprehensive measure at fair value
Aggregate Aggregate retained earnings
Item name dividend income of which changes are
gains losses of other
income transferred to recorded into other
comprehensive
retained earnings comprehensive
income
income
Suzhou
Industrial Park
Ruican
Held for non-trading
Investment 100,000,000.00 —
purposes
Enterprise
(limited
partnership)
Shanghai
MXCHIP
Held for non-trading
Information 17,832,510.78 —
purposes
Technology
Co., Ltd.
13. Investment properties
(1) Investment properties using cost measurement mode
√ Applicable □ Not applicable
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Unit: yuan
Houses and Construction
Item Land use right Total
buildings in progress
I. Original book value
1. Beginning balance 2,686,483.26 2,686,483.26
2. Amount increased in current period 18,304,840.14 18,304,840.14
(1) Purchased
(2) Transfer from inventory/fixed
18,304,840.14 18,304,840.14
assets/construction in progress
(3) Increase by business combination
3. Amount decreased in current period 9,314,612.72 9,314,612.72
(1) Disposal
(2) Other transfer-out 9,314,612.72 9,314,612.72
4. Ending balance 11,676,710.68 11,676,710.68
II. Accumulated depreciation and amortization
1. Beginning balance 95,481.42 95,481.42
2. Amount increased in current period 864,036.59 864,036.59
(1) Accrual or amortization 864,036.59 864,036.59
3. Amount decreased in current period 368,703.40 368,703.40
(1) Disposal 368,703.40 368,703.40
(2) Other transfer-out
4. Ending balance 590,814.61 590,814.61
III. Provision for impairment
1. Beginning balance
2. Amount increased in current period
(1) Provision
3. Amount decreased in current period
(1) Disposal
(2) Other transfer-out
150
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4. Ending balance
IV. Book value
1. Ending book value 11,085,896.07 11,085,896.07
2. Beginning book value 2,591,001.84 2,591,001.84
14. Fixed assets
Unit: yuan
Item Ending balance Beginning balance
Fixed assets 1,179,306,020.01 824,978,354.71
Total 1,179,306,020.01 824,978,354.71
(1) Fixed assets
Unit: yuan
Houses and Machinery Transportation Other
Item Total
building equipment equipment equipment
I. Original book value:
1. Beginning balance 701,928,665.91 617,955,333.33 18,885,826.18 78,572,369.24 1,417,342,194.66
2. Amount increased
400,651,311.17 68,680,891.69 4,085,159.49 9,145,740.77 482,563,103.12
in current period
(1) Purchase 6,628,955.63 4,085,159.49 6,241,525.64 16,955,640.76
(2) Transfer from
construction in 391,336,698.45 62,051,936.06 2,904,215.13 456,292,849.64
progress
(3) Increase by
business
combination
(4) Other increase 9,314,612.72 9,314,612.72
3. Amount decreased
30,454,417.23 7,466,338.30 1,176,561.36 3,699,402.49 42,796,719.38
in current period
(1) Disposal or
30,454,417.23 7,466,338.30 1,176,561.36 3,699,402.49 42,796,719.38
scrap
4. Ending balance 1,072,125,559.85 679,169,886.72 21,794,424.31 84,018,707.52 1,857,108,578.40
II. Accumulated
151
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depreciation
1. Beginning
240,819,699.50 289,865,433.64 11,571,868.20 50,106,838.61 592,363,839.95
balance
2. Amount
increased in 36,800,217.67 56,458,688.18 2,291,136.46 9,611,071.47 105,161,113.78
current period
(1) Provision 36,800,217.67 56,458,688.18 2,291,136.46 9,611,071.47 105,161,113.78
3. Amount
decreased in 10,091,718.33 5,166,445.65 1,115,168.29 3,349,063.07 19,722,395.34
current period
(1) Disposal or
10,091,718.33 5,166,445.65 1,115,168.29 3,349,063.07 19,722,395.34
scrap
4. Ending balance 267,528,198.84 341,157,676.17 12,747,836.37 56,368,847.01 677,802,558.39
III. Provision for
impairment
1. Beginning balance
2. Amount increased in
current period
(1) Provision
3. Amount decreased
in current period
(1) Disposal or
scrap
4. Ending balance
IV. Book value
1. Ending book value 804,597,361.01 338,012,210.55 9,046,587.94 27,649,860.51 1,179,306,020.01
2. Beginning book
461,108,966.41 328,089,899.69 7,313,957.98 28,465,530.63 824,978,354.71
value
(2) Fixed assets without certificate of title
Unit: yuan
Item Book value Reasons for not obtaining the certificate
152
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of title
Houses and buildings 335,356,590.18 The newly built plant is being handled
15. Construction in progress
Unit: yuan
Item Ending balance Beginning balance
Construction in progress 454,643,364.82 463,424,647.46
Total 454,643,364.82 463,424,647.46
(1) Construction in progress
Unit: yuan
Ending balance Beginning balance
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
Maoshan intelligent
manufacturing base 194,423,004.31 194,423,004.31 358,241,059.59 358,241,059.59
infrastructure project
Shengzhou Chengnan
174,099,821.16 174,099,821.16 73,511,454.76 73,511,454.76
project
ROBAM Building
59,931,795.23 59,931,795.23 2,219,316.28 2,219,316.28
project
Project of production
10,336,283.17 10,336,283.17
department 1
Integrated range hood
3,256,637.20 3,256,637.20
project
Customized management
3,223,516.47 3,223,516.47 3,770,316.32 3,770,316.32
software
Project of production
2,779,911.26 2,779,911.26
department 3
Project of production
1,185,840.80 1,185,840.80 1,530,973.46 1,530,973.46
department 2
Black light workshop
14,096,794.95 14,096,794.95
project
Riveting equipment
4,568,965.52 4,568,965.52
project
153
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Air line project 1,663,716.90 1,663,716.90
Other sporadic projects 5,406,555.22 5,406,555.22 3,822,049.68 3,822,049.68
Total 454,643,364.82 454,643,364.82 463,424,647.46 463,424,647.46
(2) Current changes in major projects under construction
Unit: yuan
Amount carried Proportion
Amount Other Progress Source
Beginning forward to fixed of total
Item name Budget number increased in decreases in Ending balance of of
balance assets in current project input
current period current period works funds
period to the budget
Maoshan
intelligent
manufacturing
899,280,000.00 358,241,059.59 229,650,073.92 393,468,129.20 194,423,004.31 65.37% 65.37% Other
base
infrastructure
project
Shengzhou
Chengnan 240,960,000.00 73,511,454.76 135,105,069.03 34,209,021.20 307,681.43 174,099,821.16 72.25% 72.25% Other
project
ROBAM
Building 708,250,000.00 2,219,316.28 57,712,478.95 59,931,795.23 8.46% 8.46% Other
project
Total 1,848,490,000.00 433,971,830.63 422,467,621.90 427,677,150.40 307,681.43 428,454,620.70 -- -- --
16. Right-of-use assets
Unit: yuan
Item Houses and buildings Total
I. Original book value:
1. Beginning balance 15,768,797.39 15,768,797.39
2. Amount increased in current period 19,851,959.93 19,851,959.93
3. Amount decreased in current period
4. Ending balance 35,620,757.32 35,620,757.32
II. Accumulated depreciation
1. Beginning balance 394,219.93 394,219.93
154
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2. Amount increased in current period 5,323,583.17 5,323,583.17
(1) Provision 5,323,583.17 5,323,583.17
3. Amount decreased in current period
(1) Disposal
4. Ending balance 5,717,803.10 5,717,803.10
III. Provision for impairment
1. Beginning balance
2. Amount increased in current period
(1) Provision
3. Amount decreased in current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 29,902,954.22 29,902,954.22
2. Beginning book value 15,374,577.46 15,374,577.46
17. Intangible assets
(1) Intangible assets
Unit: yuan
Item Land use right Software Trademark Patent Total
I. Original book value
1. Beginning balance 225,656,679.95 52,340,766.57 24,624,622.64 7,300,000.00 309,922,069.16
2. Amount increased
7,522,919.18 7,522,919.18
in current period
(1) Purchase 7,522,919.18 7,522,919.18
(2) Internal R&D
(3) Increase by
business
combination
155
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3. Amount decreased
in current period
(1) Disposal
4. Ending balance 225,656,679.95 59,863,685.75 24,624,622.64 7,300,000.00 317,444,988.34
II. Accumulated
amortization
1. Beginning balance 25,628,097.71 40,125,345.47 6,143,693.36 2,807,692.30 74,704,828.84
2. Amount increased
4,508,422.28 5,254,394.80 2,462,462.24 1,123,076.92 13,348,356.24
in current period
(1) Provision 4,508,422.28 5,254,394.80 2,462,462.24 1,123,076.92 13,348,356.24
3. Amount decreased
in current period
(1) Disposal
4. Ending balance 30,136,519.99 45,379,740.27 8,606,155.60 3,930,769.22 88,053,185.08
III. Provision for
impairment
1. Beginning balance
2. Amount increased
in current period
(1) Provision
3. Amount decreased
in current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 195,520,159.96 14,483,945.48 16,018,467.04 3,369,230.78 229,391,803.26
2. Beginning book
200,028,582.24 12,215,421.10 18,480,929.28 4,492,307.70 235,217,240.32
value
156
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18. Goodwill
(1) Original book value of goodwill
Unit: yuan
Decrease in
Increase in current
current
period
Investee name or goodwill forming matter Beginning balance period Ending balance
By business
Disposal
combination
Shengzhou Kinde Intelligent Kitchen
80,589,565.84 80,589,565.84
Electric Co., Ltd.
Total 80,589,565.84 80,589,565.84
(2) Provision for impairment of goodwill
The Company recognizes Shengzhou Kinde as an asset group, and the asset group of goodwill at the end of the year is consistent
with the asset group recognized in the goodwill impairment test on the purchase date and previous years.
Goodwill impairment test process and recognition method of key parameters (forecast period growth rate when estimating the present
value of future cash flow, stable period growth rate, profit rate, discount rate and forecast period) and goodwill impairment loss:
The Company entrusts Zhonghe Asset Appraisal Co., Ltd. (hereinafter referred to as Zhonghe Asset) to evaluate Shengzhou Kinde
asset group to determine whether the goodwill is impaired. According to the Z.H.Z.B.Zi (2022) No.BJU3002 Valuation Report for the
purpose of goodwill impairment test issued by Zhonghe Asset, Zhonghe Asset are determined according to the five -year cash flow
forecast approved by the management, and the cash flow after the five-year forecast period is calculated at a specific long-term
average growth rate, which is calculated by using the present value model of future cash flow and based on the assumption of going
concern, the higher of the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected
future cash flow of the asset is used for the impairment test of goodwill. According to the test, the recoverable amount of Shengzhou
Kinde asset group is higher than the book value of the asset group including goodwill, and no impairment of goodwill is found.
19. Long-term unamortized expenses
Unit: yuan
Amortization
Amount increased
Item Beginning balance amount in current Other decreases Ending balance
in current period
period
Service charge 317,094.77 771,465.52 170,531.21 918,029.08
Consulting fee 241,087.85 121,512.86 191,400.56 171,200.15
Training
37,665.20 37,665.20
membership fee
Brand 1,202,511.03 1,588,599.43 1,218,234.25 1,572,876.21
157
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endorsement fee
Office decoration
3,636,099.11 942,907.49 2,693,191.62
fee
Environmental
30,139.14 30,139.14
protection fee
Total 1,798,358.85 6,147,816.06 2,560,738.71 5,385,436.20
20. Deferred income tax assets and deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for credit
917,479,025.92 138,811,114.82 152,718,639.18 24,152,559.74
impairment
Recognition for
provisional estimate 656,596,891.65 98,489,533.76 399,311,723.24 59,896,758.48
cost
Fair value change of
other equity instrument 117,832,510.78 17,674,876.62 17,832,510.78 2,674,876.62
investments
Recognition for
102,890,393.42 15,433,559.00 121,306,538.90 18,195,980.84
deferred income
Provision for
80,039,607.58 12,005,941.14 31,299,857.11 4,694,978.56
impairment of assets
Payroll payable
withdrawn but not 9,848,248.72 1,477,237.31 863,548.19 129,532.23
issued
Unrealized profit of
6,550,213.16 1,637,825.81 10,991,208.96 2,747,344.24
internal transaction
Recognition for equity
3,118,765.48 480,458.47
incentive
Unrecognized
1,349,960.44 337,490.11
financing expenses
Total 1,895,705,617.15 286,348,037.04 734,324,026.36 112,492,030.71
158
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(2) Unoffset deferred income tax liabilities
Unit: yuan
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Appreciation of assets
appraisal for business
25,908,559.83 3,886,283.97 30,040,521.60 4,506,078.24
combination not under
common control
Taxable temporary
differences due to the
15,789,858.60 2,368,478.79 4,697,876.68 704,681.50
pretax deduction of
fixed assets
Total 41,698,418.43 6,254,762.76 34,738,398.28 5,210,759.74
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
Ending balance of Beginning offset Beginning balance of
Ending offset amount
deferred income tax amount of deferred deferred income tax
Item of deferred income tax
assets and liabilities income tax assets and assets and liabilities
assets and liabilities
after offset liabilities after offset
Deferred income tax
286,348,037.04 112,492,030.71
assets
Deferred income tax
6,254,762.76 5,210,759.74
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: yuan
Item Ending balance Beginning balance
Deductible loss 18,037,908.58 9,798,260.49
Total 18,037,908.58 9,798,260.49
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following year
Unit: yuan
Year Ending amount Beginning amount Remark
159
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2021 39,785.54
2022 39,552.31 39,552.31
2023 6,714.34 6,714.34
2024 5,602.28 5,602.28
2025 9,556,499.12 9,706,606.02
2026 8,429,540.53
Total 18,037,908.58 9,798,260.49 --
21. Other non-current assets
Unit: yuan
Ending balance Beginning balance
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
Advance
payment for 33,649,858.27 33,649,858.27 3,624,837.56 3,624,837.56
equipment
Advance
payment for 3,129,005.00 3,129,005.00
house purchase
Advance
payment for 1,690,011.17 1,690,011.17
engineering
Advance
payment for 57,442.11 57,442.11
software
Total 38,468,874.44 38,468,874.44 3,682,279.67 3,682,279.67
22. Short-term borrowing
(1) Classification of short-term borrowing
Unit: yuan
Item Ending balance Beginning balance
Credit loan 29,616,655.41 6,076,177.30
Total 29,616,655.41 6,076,177.30
Description of classification of short-term borrowing
160
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Note: The balance of short-term borrowing is the factoring of bank accounts receivable with recourse not derecognized by the
Company.
23. Notes payable
Unit: yuan
Type Ending balance Beginning balance
Banker's acceptance bill 962,665,463.99 751,802,498.92
Total 962,665,463.99 751,802,498.92
24. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
Item Ending balance Beginning balance
Payment for materials 1,087,160,715.37 950,631,079.92
Costs 923,334,216.09 709,723,793.53
Project payment 152,898,742.07 48,606,778.41
Payment for equipment 18,506,587.47 14,870,556.23
Total 2,181,900,261.00 1,723,832,208.09
(2) Important accounts payable with the aging more than 1 year
As of December 31, 2021, the Company's important accounts payable with an age of more than one year were 10,535,032.25 yuan,
mainly for fees not yet settled.
25. Contract liabilities
Unit: yuan
Item Ending balance Beginning balance
Advances from customers 1,026,782,402.35 949,591,228.35
Total 1,026,782,402.35 949,591,228.35
26. Payroll payable
(1) Presentation of payroll payable
Unit: yuan
161
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Increase in current Decrease in current
Item Beginning balance Ending balance
period period
I. Short-term
123,492,155.96 888,568,555.09 852,352,778.61 159,707,932.44
compensation
II. Welfare after
dismission -
2,638,235.28 64,090,669.18 61,259,411.82 5,469,492.64
defined
contribution plan
Total 126,130,391.24 952,659,224.27 913,612,190.43 165,177,425.08
(2) Presentation of short-term compensation
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Wages, bonuses, allowances
118,930,729.93 763,310,743.88 727,095,397.98 155,146,075.83
and subsidies
2. Employee welfare expenses 32,392,354.95 32,392,274.95 80.00
3. Social insurance premium 3,928,826.98 44,247,955.36 44,407,680.69 3,769,101.65
Including: medical insurance
3,847,685.58 42,495,622.75 42,723,960.08 3,619,348.25
premium
Industrial injury
81,141.40 1,752,332.61 1,683,720.61 149,753.40
insurance premium
4. Housing fund 282,148.00 34,910,135.36 34,817,348.96 374,934.40
5. Labor union expenditure and
350,451.05 13,707,365.54 13,640,076.03 417,740.56
personnel education fund
Total 123,492,155.96 888,568,555.09 852,352,778.61 159,707,932.44
(3) Presentation of defined contribution plans
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Basic endowment
2,542,370.21 61,903,705.37 59,164,011.86 5,282,063.72
insurance
2. Unemployment
insurance 95,865.07 2,186,963.81 2,095,399.96 187,428.92
premium
162
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Total 2,638,235.28 64,090,669.18 61,259,411.82 5,469,492.64
27. Tax payable
Unit: yuan
Item Ending balance Beginning balance
Corporate income tax 137,979,203.70 111,445,197.66
Added value tax 53,911,099.54 61,150,126.40
Urban maintenance and construction tax 2,141,479.84 3,937,862.94
Individual income tax 3,868,615.91 1,526,364.72
Education surcharge 1,657,978.22 1,687,655.54
Surcharge for local education 1,105,318.89 1,125,103.76
Stamp duty 600,407.34 507,609.14
Land use tax 4,382,947.50 340,344.00
Housing property tax 6,555,342.60 166,973.35
Total 212,202,393.54 181,887,237.51
28. Other payables
Unit: yuan
Item Ending balance Beginning balance
Other payables 267,781,215.06 242,559,615.30
Total 267,781,215.06 242,559,615.30
(1) Other payables
1) Other payables listed by nature
Unit: yuan
Item Ending balance Beginning balance
Margin payable 252,335,944.60 234,180,292.44
Collections for others 6,179,088.18 2,616,338.90
Deposit payable 5,104,062.30 4,539,028.30
Related party transactions 2,700,000.00
Other 1,462,119.98 1,223,955.66
Total 267,781,215.06 242,559,615.30
163
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2) Important other payable with the aging more than 1 year
As of December 31, 2021, the Company's important other payables with an age of more than one year were 202,878,637.95 yuan,
mainly for sales deposit.
29. Non-current liabilities due within a year
Unit: yuan
Item Ending balance Beginning balance
Lease liabilities due within one year 5,387,591.43 684,535.10
Total 5,387,591.43 684,535.10
30. Other current liabilities
Unit: yuan
Item Ending balance Beginning balance
Output tax to be carried forward 124,284,081.56 116,535,407.26
Notes receivable not derecognized 10,000,000.00
Total 124,284,081.56 126,535,407.26
31. Lease liabilities
Unit: yuan
Item Ending balance Beginning balance
Lease payments 37,325,149.01 19,997,500.29
Unrecognized financing expenses -5,760,523.29 -4,607,926.84
Non-current liabilities reclassified to due
-5,387,591.43 -684,535.10
within a year
Total 26,177,034.29 14,705,038.35
32. Deferred income
Unit: yuan
Increase in current Decrease in
Item Beginning balance Ending balance Causes
period current period
Government
150,163,523.90 18,416,145.48 131,747,378.42
subsidies
Total 150,163,523.90 18,416,145.48 131,747,378.42 --
164
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Projects involving government subsidies:
Unit: yuan
Amount
Amount of
recorded in
Year-beginning additional Year-end Asset/income
Government subsidy project current profit
balance subsidy in balance related
and loss in
current year
current year
Intelligent manufacturing,
integrated standardization and new 46,784,353.78 8,539,505.64 38,244,848.14 Asset related
mode application project
Production and construction project
of annual production of 2.25 24,904,851.84 2,573,781.24 22,331,070.60 Asset related
million kitchen appliances
Construction project of kitchen
appliance R&D, design and test 9,409,768.25 2,365,167.24 7,044,601.01 Asset related
center
Subsidy for the production and
construction project of annual
2,282,841.08 1,143,783.96 1,139,057.12 Asset related
production of 1 million kitchen
appliances
Project of annual 108 embedded
4,934,334.75 682,491.00 4,251,843.75 Asset related
kitchen electric appliance products
New-generation environmentally
friendly and energy-saving kitchen 721,676.15 190,650.84 531,025.31 Asset related
appliances and production line
Digital intelligent manufacturing
workshop of intelligent household 581,649.00 159,426.72 422,222.28 Asset related
appliances
Project of annual production of
128,386.69 103,706.04 24,680.65 Asset related
2.25 million digital workshops
Recycling transformation project 452,076.81 91,610.16 360,466.65 Asset related
Subsidies for investment project of
annual production of 150,000 range 88,988.91 58,882.80 30,106.11 Asset related
hoods
Academician expert workstation 256,878.32 46,255.68 210,622.64 Asset related
Kitchen appliance R&D, design
42,571.60 7,624.80 34,946.80 Asset related
and test center
Technological upgrading project of
8,300,000.00 8,300,000.00 Asset related
manufacturing enterprises
Technical transformation project
with an annual output of 500,000 2,591,399.07 374,411.16 2,216,987.91 Asset related
units
Intelligent unmanned factory based
19,826,762.65 2,078,848.20 17,747,914.45 Asset related
on 5G and cloud technology
Subsidy for No.M2020-09 Land,
28,856,985.00 28,856,985.00 Asset related
Chengnan New Area
Total 150,163,523.90 18,416,145.48 131,747,378.42 —
33. Capital stock
Unit: yuan
Beginning balance Increase/decrease (+, -) Ending balance
165
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Share capital
New issue of Share
increase from Other Subtotal
shares donation
reserved funds
Total amount
949,024,050.00 949,024,050.00
of shares
34. Capital reserve
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Capital premium
(capital stock 401,799,332.67 401,799,332.67
premium)
Other capital surplus 3,118,765.48 3,118,765.48
Total 401,799,332.67 3,118,765.48 404,918,098.15
35. Treasury stock
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Share repurchase 199,995,742.59 199,995,742.59
Total 199,995,742.59 199,995,742.59
The increase in current year is the share repurchase plan of the Company from the secondary market for employee equity incent ive.
36. Other comprehensive income
Unit: yuan
Amount incurred in current period
Less: amount Less:
included in amount
other included Attributab
Amount Attributab
comprehensi in other Less: le to
Beginning before le to the Ending
Item ve income in comprehe Income minority
balance current parent balance
previous nsive tax sharehold
income company
period and income in expenses ers after
tax after tax
included in previous tax
profit and period
loss in and
166
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current included
period in
carryforw
ard
retained
earnings
in current
period
I. Other comprehensive income -100,15
-15,157,634 -100,000, -15,000,0 -85,000,0
that can't be reclassified into 7,634.1
.16 000.00 00.00 00.00
profit and loss 6
-100,15
Fair value change of other equity -15,157,634 -100,000, -15,000,0 -85,000,0
7,634.1
instrument investments .16 000.00 00.00 00.00
6
-100,15
-15,157,634 -100,000, -15,000,0 -85,000,0
Total other comprehensive income 7,634.1
.16 000.00 00.00 00.00
6
37. Surplus reserves
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Statutory surplus
474,516,412.50 474,516,412.50
reserves
Total 474,516,412.50 474,516,412.50
38. Undistributed profit
Unit: yuan
Item Current period Prior period
Undistributed profit at the end of previous
6,240,444,654.34 5,054,206,720.45
period before adjustment
Undistributed profits at the beginning of the
6,240,444,654.34 5,054,206,720.45
period after adjustment
Plus: Net profits attributable to the owners of
1,331,712,059.03 1,660,749,958.89
parent company in the current period
Common stock dividends payable 473,435,158.00 474,512,025.00
Undistributed profits at the end of the period 7,098,721,555.37 6,240,444,654.34
167
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39. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 9,878,609,034.58 4,780,326,936.38 7,950,757,663.78 3,506,245,981.19
Other businesses 269,097,000.77 54,726,467.99 177,863,135.53 56,960,949.68
Total 10,147,706,035.35 4,835,053,404.37 8,128,620,799.31 3,563,206,930.87
40. Taxes and surcharges
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Urban maintenance and construction tax 38,432,112.18 34,478,037.91
Education surcharge 27,451,508.66 24,627,169.96
Stamp duty 3,168,252.51 2,261,813.76
Land use tax 4,444,471.50 340,344.00
Housing property tax 7,059,080.25 194,014.14
Vehicle and vessel use tax 8,219.19 24,962.74
Other 27,605.88 30,288.37
Total 80,591,250.17 61,956,630.88
41. Selling expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Sales and service fees 888,105,322.12 717,952,394.72
Advertising and promotion expenses 688,276,034.18 511,075,473.36
Employee compensation 335,997,909.99 242,145,914.14
Booth decoration fee 234,356,309.98 135,635,749.35
Promotion fees 120,917,154.89 154,130,738.31
Material consumption 70,585,682.15 64,982,374.37
Transportation expenses 258,544,222.83
Business entertainment expenses 17,321,525.30 13,609,905.26
Traveling expense 36,526,754.00 10,818,904.86
Rental fees 16,683,897.40 13,434,292.19
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Intermediary service charge 18,942,729.75 10,691,046.91
Office allowance 12,091,581.39 6,327,286.95
Other 14,613,138.77 7,616,745.62
Total 2,454,418,039.92 2,146,965,048.87
42. Management costs
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 196,152,990.40 156,332,380.80
Depreciation and amortization 49,553,437.40 44,483,666.82
Consulting service charge 27,970,501.93 29,904,258.97
Maintenance expense 18,523,798.07 12,833,205.67
Office allowance 15,140,294.06 11,475,519.47
Rental fees 10,256,242.02 7,249,751.59
Traveling expense 8,295,851.23 6,210,428.73
Business entertainment expenses 7,427,987.83 5,061,075.24
Communication expense 5,536,487.28 4,880,481.20
Car fare 4,010,092.59 3,787,560.02
Equity incentive fee 3,118,765.48
Material consumption 2,410,539.20 3,471,188.77
Other 15,365,385.14 11,296,245.96
Total 363,762,372.63 296,985,763.24
43. Research and development expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 178,520,125.46 139,169,323.42
Direct investment 151,535,589.24 128,816,650.57
Depreciation and amortization 15,344,134.84 15,654,469.61
Design fee 7,421,984.65 7,071,597.30
Other expenses 13,204,832.15 12,635,514.91
Total 366,026,666.34 303,347,555.81
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44. Financial expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Interest expenditure 9,638,311.28 6,721,543.47
Less: Interest revenue 152,136,833.79 160,282,611.34
Plus: Exchange gain or loss 1,087,864.00 2,177,052.47
Plus: other expenses 1,737,150.64 1,235,828.65
Total -139,673,507.87 -150,148,186.75
45. Other income
Unit: yuan
Other sources of income Amount incurred in current period Amount incurred in previous period
Financial support funds for enterprise
33,070,000.00 54,039,120.00
cultivation
Amortization of deferred income 18,416,145.48 16,167,324.40
Embedded software tax rebate 10,979,888.36
Special fund for industrial development 7,967,840.13 2,749,907.00
Patent reward fund 4,352,000.00 7,509,809.00
Job subsidies and social insurance
1,038,232.33 4,685,321.80
subsidies
Special financial funds 976,752.00 5,650,000.00
Individual income tax service charge
575,697.14 1,111,062.72
refund
VAT exemption or reduction 18,000.00 18,000.00
Other subsidies 30,000.00 251,700.00
46. Investment income
Unit: yuan
Amount incurred in Amount incurred in
Item
current period previous period
long-term equity investment gains measured by employing t he equity
-47,639.68 -715,569.20
method
Investment income from trading financial assets during the holding period 90,550,171.74 28,218,702.24
Dividend income from other equity instrument investments in the holding 11,985,836.92
170
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period
Total 90,502,532.06 39,488,969.96
47. Credit impairment loss
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Loss on bad debts of other receivables -7,095,025.28 -3,511,997.51
Loss on bad debts of notes receivable -179,981,579.03 -33,316,740.51
Loss on bad debts of accounts receivable -578,422,832.76 -27,309,380.51
Total -765,499,437.07 -64,138,118.53
48. Assets impairment losses
Unit: yuan
Amount incurred in current
Item Amount incurred in previous period
period
II. Inventory falling price loss and impairment
-52,632,725.80 -21,977,893.76
loss of contract performance costs
Total -52,632,725.80 -21,977,893.76
49. Income from disposal of assets
Unit: yuan
Source of income from disposal of assets Amount incurred in current period Amount incurred in previous period
Income from disposal of non-current
-2,122,173.87 -387,844.96
assets
Including: income from disposal of fixed
-2,122,173.87 -387,844.96
assets
Total -2,122,173.87 -387,844.96
50. Non-operating income
Unit: yuan
Amounts recorded in the
Amount incurred in current Amount incurred in previous
Item non-recurring gains and
period period
losses of the current period
Government subsidies 43,000.00 131,475.00 43,000.00
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Income from fines 15,853.31 15,853.31
Other 1,720,972.55 952,904.00 1,720,972.55
Total 1,779,825.86 1,084,379.00
Government subsidies included in current profit and loss:
Unit: yuan
Amount
Whether the subsidy Amount
Special incurred in
Subsidized project affects the profit and incurred in Asset/income related
subsidy or not previous
loss of current year current period
period
Subsidies for early
scrapping of diesel
vehicles under China III 13,000.00 77,000.00 Income related
vehicle emission
standards
Corporate Culture Club
30,000.00 30,000.00 Income related
awards and subsidies
Subsidy for replacing
8,500.00 Income related
training with work
Other 15,975.00 Income related
51. Non-operating expenditure
Unit: yuan
Amounts recorded in the
Amount incurred in current Amount incurred in previous
Item non-recurring gains and
period period
losses of the current period
External donations 2,000,000.00 2,090,000.00 2,000,000.00
Abnormal loss 350,752.22 350,752.22
Penalty expenditure 178,475.20 178,475.20
Loss on damage and scrap of
168,013.37 34,861.58 168,013.37
non-current assets
Other 1,514,224.96 1,828,383.76 1,514,224.96
Total 4,211,465.75 3,953,245.34 4,211,465.75
52. Income tax expenses
(1) Income tax expenses
Unit: yuan
172
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Item Amount incurred in current period Amount incurred in previous period
Current income tax expenses 341,789,501.27 303,369,646.88
Deferred income tax expenses -157,812,003.31 -42,122,003.14
Total 183,977,497.96 261,247,643.74
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
Item Amount incurred in current period
Total profit 1,532,768,920.66
Income tax expenses calculated at the appropriate/applicable
229,915,338.10
tax rate
Impact of different tax rates applied on subsidiaries 816,537.14
Impact of income tax before adjustment -4,259,934.76
Impact of non-deductible costs, expenses and losses 4,970,781.68
Impact of deductible losses on the use of deferred income tax
-37,526.73
assets not previously recognized
Impact of temporary difference or deductible losses on
2,222,067.42
unrecognized deferred income tax assets in the current period
Profits and losses of cooperative enterprise or joint venture
7,145.95
accounted by equity method
Tax impact of additional deduction for research and
-49,656,610.83
development expenses (express with "-")
Income tax expenses 183,977,497.96
53. Other comprehensive income
See the notes for details.
54. Cash flow statement items
(1) Other cash received related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Income from deposit interest 152,136,833.79 160,282,611.34
Government subsidies 59,051,409.96 127,625,980.52
Agent business 17,645,868.20 4,896,957.44
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Imprest 5,429,032.71 2,627,693.78
Margin and deposit 21,136,563.04 422,768.10
L/C deposit 61,930.00
Other payments 16,271,319.04 2,880,904.80
Total 271,671,026.74 298,798,845.98
(2) Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Period charge 2,043,557,267.21 1,659,646,233.71
Agent business 51,345,724.50 44,527,246.51
Margin and deposit 11,160,267.03 13,012,066.02
Deposit for L/C and acceptance bill 54,739,852.30 10,192,656.02
Imprest 1,154,242.51 621,928.41
Other 19,699,160.50 17,300,131.65
Total 2,181,656,514.05 1,745,300,262.32
(3) Other cash received related to financing activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Accounts receivable factoring income 30,694,588.74 6,076,177.30
Total 30,694,588.74 6,076,177.30
(4) Other cash paid related to financing activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Rent 6,046,438.38
Share repurchase 199,995,742.59
Total 206,042,180.97
55. Further information on cash flow statement
(1) Further information on cash flow statement
Unit: yuan
174
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Further information Current amount Last term amount
1. Reconciliation from net profits to cash flows from operating activities: -- --
Net profit 1,348,791,422.70 1,687,357,903.94
Plus: Provision for impairment of assets 52,632,725.80 21,977,893.76
Depreciation of fixed assets, oil and gas assets and productive biological
106,025,150.37 95,376,728.90
assets
Depreciation of Right-of-use assets 5,717,803.10
Amortization of intangible assets 13,348,356.24 13,619,877.40
Amortization of long-term deferred expenses 2,560,738.71 420,355.97
Loss on disposal of fixed assets, intangible assets and other long-term assets
2,122,173.87 387,844.96
(gains expressed with “-”)
Loss on retirement of fixed assets (gains expressed with “-”) 168,013.37 34,861.58
Loss from fair value changes (gains expressed with “-”)
Financial expenses (gains expressed with “-”) 10,451,521.99 7,763,829.30
Investment losses (gains expressed with “-”) -90,502,532.06 -39,488,969.96
Decreased in deferred income tax assets (increase expressed with “-”) -158,856,006.33 -41,614,914.62
Increase in deferred income tax liabilities (decrease expressed with “-”) 1,044,003.02 -507,088.51
Decrease in inventories (increase expressed with “-”) -434,882,037.88 -68,890,313.40
Decrease in operating receivables (increase expressed with “-”) -859,544,649.72 -681,714,318.42
Increase in operating payables (decrease expressed with “-”) 600,801,099.08 478,438,149.28
Other 765,499,437.07 64,138,118.53
Net cash flow from operating activities 1,365,377,219.33 1,537,299,958.71
2. Significant investment and financing activities not involving cash deposit and
-- --
withdrawal:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents: -- --
Ending balance of cash 3,719,988,820.35 3,886,096,513.56
Less: Beginning balance of cash 3,886,096,513.56 4,029,296,265.50
Plus: Beginning balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase of cash and cash equivalents -166,107,693.21 -143,199,751.94
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(2) Composition of cash and cash equivalents
Unit: yuan
Item Ending balance Beginning balance
I. Cash 3,719,988,820.35 3,886,096,513.56
Including: cash on hand 80,944.99 110,770.11
Bank deposit readily available for
3,718,304,060.33 3,885,907,031.42
payment
Other monetary capital readily
1,603,815.03 78,712.03
available for payment
III. Balance of cash and cash equivalents
3,719,988,820.35 3,886,096,513.56
at end of period
56. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
Ending balance in foreign Ending balance converted to
Item Conversion exchange rate
currency RMB
Monetary capital -- --
Including: USD 6,967,391.94 6.3757 44,422,000.73
Euro 3.29 7.2197 15.21
Accounts receivable -- --
Including: USD 3,449,944.52 6.3757 21,995,808.72
Euro 289.60 7.2197 2,090.83
Advance from customers
Including: EUR 17,468.96 7.2197 126,120.65
57. Government subsidies
(1) Basic information of government subsidies
Unit: yuan
Amount recorded in
Type Amount Presented item
current profit and loss
Financial subsidies for enterprise cultivation 33,000,000.00 Other income 33,000,000.00
Embedded software tax rebate 10,979,888.36 Other income 10,979,888.36
176
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Performance award of Shanghai Hongkou District Finance
2,600,000.00 Other income 2,600,000.00
Bureau
Financial incentives for green factories in 2020 2,000,000.00 Other income 2,000,000.00
The first batch of provincial industrial Internet platform
1,750,000.00 Other income 1,750,000.00
district-level award
DIA China Design Intelligence Award 1,000,000.00 Other income 1,000,000.00
2020 district standardization project award 800,000.00 Other income 800,000.00
Yuhang Management Committee energy double control
715,502.22 Other income 715,502.22
subsidies
Social security subsidies 596,281.41 Other income 596,281.41
Individual income tax service charge refund 575,697.14 Other income 575,697.14
2020 science and technology progress award 500,000.00 Other income 500,000.00
Subsidies from Shengzhou Administration for Market
500,000.00 Other income 500,000.00
Regulation
2019 reward funds for increasing enterprise R & D investment
429,600.00 Other income 429,600.00
and project
Subsidy for replacing training with work 376,600.00 Other income 376,600.00
Subsidies for talents introduced by enterprises in the fourth
330,630.00 Other income 330,630.00
quarter of 2020
R & D subsidies for Hangzhou science and technology
294,000.00 Other income 294,000.00
enterprises in 2021
Foreign trade and economic subsidies from Yuhang Bureau of
288,000.00 Other income 288,000.00
Commerce
2020 Zhejiang manufacturing brand certification award of
200,000.00 Other income 200,000.00
Linping District
2020 district-level cultural and creative policy incentives and
200,000.00 Other income 200,000.00
subsidies
2020 national high-tech enterprise award 200,000.00 Other income 200,000.00
Financial subsidies from Bureau of Commerce of Linping
200,000.00 Other income 200,000.00
District
Subsidies for invention patent industrialization project in 2020 200,000.00 Other income 200,000.00
Subsidies for per-mu leaders in Shaoxing in 2020 200,000.00 Other income 200,000.00
Financial support for technological innovation in 2020-2021 150,000.00 Other income 150,000.00
2019 industrial economic policy funds 150,000.00 Other income 150,000.00
China Patent Excellent Award 100,000.00 Other income 100,000.00
Subsidies for patent protection projects of district government 90,832.00 Other income 90,832.00
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Subsidies for enterprises from Yuhang District Market
87,920.00 Other income 87,920.00
Supervision Administration
Special incentive funds for supply chain innovation and
70,000.00 Other income 70,000.00
application in 2021
Private economic development incentives 70,000.00 Other income 70,000.00
Corporate Culture Club awards and subsidies 30,000.00 Other income 30,000.00
Commendation and rewards for key enterprises of Shanghai
60,000.00 Other income 60,000.00
Hongkou District Investment Promotion Office
Subsidies and rewards for 5G technology application and
50,000.00 Other income 50,000.00
promotion projects in 2020
2019 Shengzhou industrial enterprise equipment investment
38,800.00 Other income 38,800.00
subsidy funds
Top 10 industrial enterprises in 2020 30,000.00 Other income 30,000.00
Special patent subsidies 28,000.00 Other income 28,000.00
Stability maintenance subsidies 25,220.92 Other income 25,220.92
Reduction and exemption for employing unemployed
24,050.00 Other income 24,050.00
personnel for half a year
VAT exemption or reduction 18,000.00 Other income 18,000.00
Employment subsidies for the disabled 16,080.00 Other income 16,080.00
Financial subsidies of Administration Committee of Yuhang
10,000.00 Other income 10,000.00
Development Zone
Special fund for open economy development of the District in
9,000.00 Other income 9,000.00
2020
2019 innovation voucher subsidies 8,000.00 Other income 8,000.00
Energy double control assessment incentives 6,307.91 Other income 6,307.91
Non-operating
Corporate Culture Club awards and subsidies 30,000.00 30,000.00
income
Subsidies for early scrapping of diesel vehicles under China Non-operating
13,000.00 13,000.00
III vehicle emission standards income
VIII. Consolidation Scope Changes
There is no change in the scope of consolidation
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IX. IX. Interests in Other Entities
1. Interests in a subsidiary
(1) Composition of enterprise group
Subsidiary Main operation Registration Shareholding ratio Way of
Business nature
name site place Direct Indirect obtaining
Beijing
Sales of kitchen Business
ROBAM
electric combination
Electric Beijing Beijing 100.00%
appliance under common
Appliance
products control
Sales Co., Ltd.
Shanghai
Sales of kitchen Business
ROBAM
electric combination
Electric Shanghai Shanghai 100.00%
appliance under common
Appliance
products control
Sales Co., Ltd.
Sales of kitchen
Hangzhou
electric Acquisition by
Mingqi Electric Hangzhou Hangzhou 100.00%
appliance establishment
Co., Ltd.
products
De Dietrich
Household Sales of kitchen
Appliances electric Acquisition by
Shanghai Shanghai 51.00%
Trading appliance investment
(Shanghai) Co., products
Ltd.
Shengzhou
Production and Business
Kinde
sales of kitchen combination
Intelligent
Shengzhou Shengzhou electric 51.00% not under
Kitchen
appliance common
Electric Co.,
products control
Ltd.
Hangzhou
ROBAM
Assets and
Fuchuang Acquisition by
Hangzhou Hangzhou investment 100.00%
Investment establishment
management
Management
Co., Ltd.
Zhejiang Shengzhou Shengzhou Intelligent 35.70% Acquisition by
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Cooking Future kitchen design establishment
Technology
Co., Ltd.
Note: The basis that the Company holds half or less of the voting rights of Zhejiang Cooking Future Technology Co., Ltd., but still
controls Zhejiang Cooking Future Technology Co., Ltd. basis: since the Company forms a control relationship with Shengzhou Kinde,
it also forms a control relationship with its holding subsidiary Zhejiang Cooking Future Technology Co., Ltd.
(2) Important non-wholly owned subsidiary
Unit: yuan
Minority Current profits and losses
Current dividends declared to Ending balance of
Subsidiary name shareholding attributable to minority
minority shareholders minority equity
ratio shareholders
Shengzhou Kinde
Intelligent Kitchen 49.00% 19,745,641.19 22,050,000.00 134,423,431.99
Electric Co., Ltd.
Zhejiang Cooking
Future Technology Co., 30.00% -2,666,277.52 4,608,344.98
Ltd.
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
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(1) Main financial information of important non-wholly owned subsidiaries
Year-end balance
Subsidiary name Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
Shengzhou Kinde Intelligent Kitchen
215,540,936.45 309,621,535.16 525,162,471.61 204,306,095.17 35,111,747.76 239,417,842.93
Electric Co., Ltd.
Zhejiang Cooking Future Technology
18,295,624.97 1,856,306.24 20,151,931.21 4,790,781.30 4,790,781.30
Co., Ltd.
(Continued)
Year-beginning balance
Subsidiary name Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
Shengzhou Kinde Intelligent Kitchen
302,562,407.94 177,615,050.45 480,177,458.39 153,846,712.26 34,067,744.74 187,914,457.00
Electric Co., Ltd.
Zhejiang Cooking Future Technology
23,647,941.39 56,337.05 23,704,278.44 305,536.79 305,536.79
Co., Ltd.
(Continued)
Amount incurred in current year Amount incurred in last year
Subsidiary name Total Total
Cash flow from Operating Cash flow from
Operating income Net profit comprehensive Net profit comprehensive
financing activities income financing activities
income income
Shengzhou Kinde
Intelligent Kitchen 279,090,651.50 37,631,627.30 37,631,627.30 50,456,257.24 276,441,382.99 54,536,423.58 54,536,423.58 125,090,042.97
Electric Co., Ltd.
Zhejiang Cooking
Future Technology 360,328.16 -8,887,591.74 -8,887,591.74 -11,991,748.70 -751,258.35 -751,258.35 -615,581.14
Co., Ltd.
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2. Equity in joint venture arrangement or joint venture
(1) Important cooperative enterprises or joint ventures
Main Shareholding Accounting treatment method of
Name of cooperative Registration Business
operation ratio investment in cooperative
enterprise or joint venture place nature
site Direct Indirect enterprises or joint ventures
Sales of
De Dietrich Trade (Shanghai)
Shanghai Shanghai kitchen 51.00% Equity method
Co., Ltd.
appliances
Zhejiang Tingshuo Brand
Retail
Operation Management Co., Hangzhou Hangzhou 40.00% Equity method
industry
Ltd.
(2) Summary of financial information of unimportant cooperative enterprises and joint ventures
Unit: yuan
Ending balance/amount incurred in Beginning balance/amount incurred in
current period previous period
Cooperative enterprise: -- --
Total book value of investment 3,661,700.03 3,452,769.59
Total number of following items by
-- --
shareholding ratio
- Net profit 208,930.44 -715,569.20
- Total comprehensive income 208,930.44 -715,569.20
Joint venture: -- --
Total book value of investment 1,743,429.88
Total number of following items by
-- --
shareholding ratio
- Net profit -256,570.12
- Total comprehensive income -256,570.12
X. Risks Associated with Financial Instruments
The main financial instruments of the Company include accounts receivable, accounts payable, etc. The detailed description of the
financial instruments is shown in Note VI. The risks associated with these financial instruments and the risk management policies
adopted by the Company to mitigate these risks are described below. The management of the Company shall manage and monitor
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these risk exposures to ensure that the above risks are controlled within the limited scope.
1． The Company's various risk management objectives and policies are as follows:
The Company’s risk management is to strike an appropriate balance between risks and benefits, minimize the negative impact of
risks on the Company's business performance and maximize the interests of shareholders and other equity investors. Based on this
risk management objective, the basic strategy of the Company's risk management is to determine and analyze various risks face d by
the Company, establish an appropriate bottom line for risk tolerance, make risk management and timely and reliably supervise
various risks to control the risks within the limited scope.
(1) Market risk - price risk
The Company sells the products at market prices and are therefore subject to fluctuations in these prices.
(2) Credit risk
the largest credit risk exposure that may cause financial losses of the Company on December 31, 2021 mainly comes from the loss of
financial assets of the Company caused by the failure of the other party to fulfill its obligations, including the book value of financial
assets recognized in the consolidated balance sheet.
In order to reduce credit risks, the Company shall assign special personnel to determine the credit limit, conduct credit exa mination
and approval, and implement other monitoring procedures to ensure that necessary measures are taken to recover overdue claims.
Moreover, the Company shall review the recovery of each single receivable on each balance sheet date to ensure that adequate bad
debt provisions are withdrawn for unrecoverable amounts. Therefore, the Company's management believes that the Company's credit
risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of working capital is low.
There is no significant credit concentration risk due to the Company's risk exposure to multiple parties and customers.
The Company has adopted the necessary policies to ensure that all sales customers have good credit records. The Company has no
significant credit concentration risk.
Total amount of the top 5 accounts receivable: 1,228,565,365.21 yuan.
Total amount of the top 5 other receivables: 52,312,804.25 yuan.
(3) Liquidity risk:
The risk that the Company is unable to perform its financial obligations at maturity. The Company manages its liquidity risk by
ensuring that it has sufficient liquidity to meet maturing obligations without causing unacceptable losses or damage to the credibility
of the business. The management of the Company has conducted a detailed inspection on the working capital of the Company and
regularly analyzed the debt structure, term and bank line of credit to ensure sufficient funds. The conclusion is that the Company has
sufficient funds to meet the needs of the Company's short-term debts and capital expenditures. The financial assets and financial
liabilities held by the Company are analyzed as follows according to the maturity of undiscounted remaining contractual obligations:
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Amount on December 31, 2021:
One to two Two to five More than five
Item Within one year Total
years years years
Financial assets
Monetary capital 3,802,201,346.55 3,802,201,346.55
Trading financial
2,872,312,500.00 2,872,312,500.00
assets
Notes receivable 1,330,193,894.82 1,330,193,894.82
Accounts receivable 1,597,692,860.90 1,597,692,860.90
Other receivables 73,487,381.46 73,487,381.46
Financial liabilities
Short-term
29,616,655.41 29,616,655.41
borrowing
Notes payable 962,665,463.99 962,665,463.99
Accounts payable 2,181,900,261.00 2,181,900,261.00
Other payables 267,781,215.06 267,781,215.06
Payroll payable 165,177,425.08 165,177,425.08
Other current
124,284,081.56 124,284,081.56
liabilities
Non-current
liabilities due within 5,387,591.43 5,387,591.43
a year
Lease liabilities 5,861,635.26 9,596,932.61 10,718,466.42 26,177,034.29
(4) Sensitivity analysis of foreign exchange risk
The Company's exchange rate risk is mainly related to US dollar, Euro, Hong Kong dollar and other currencies. The foreign
exchange risk borne by the Company is mainly related to USD (which shall be modified according to the actual situation), and the
main business activities of the Company are denominated and settled in RMB. As of December 31, 2021, the Co mpany's assets and
liabilities were RMB balance, except the foreign currency balance of the assets and liabilities in Note “VI. 54 Foreign currency
monetary items”. The foreign exchange risks arising from the assets and liabilities of such foreign currency balance may have an
impact on the Company's business performance.
The Company pays close attention to the exchange rate movement on its foreign exchange risks. and has not taken any measures to
avoid foreign exchange risks.
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XI. Fair Value Disclosure
1. Ending fair value of assets and liabilities measured with fair value
Unit: yuan
Ending fair value
Measurement Measurement of fair
Item Measurement of fair
of fair value at value at the second Total
value at the third level
the first level level
I. Continuous fair value
-- -- -- --
measurement
(I) Trading financial assets 2,872,312,500.00 2,872,312,500.00
1. Financial assets measured
with fair value and with
2,872,312,500.00 2,872,312,500.00
the changes included in
current profit and loss
(III) Other equity instrument
2,116,023.22 2,116,023.22
investments
Total assets continuously
2,874,428,523.22 2,874,428,523.22
measured at fair value
II. Non-continuous fair value
-- -- -- --
measurement
2. Continuous and non-continuous measurement items of fair value at third level, qualitative and
quantitative information on valuation techniques adopted and important parameters
Item December 31, 2021 Valuation technique Significant Relationship
Fair value unobservabl between
e value unobservable value
and fair value
Bank financial products 2,872,312,500.00 Best estimate of fair value Investment —
cost
Shanghai MXCHIP 2,116,023.22 Best estimate of fair value Investment —
Information cost
Technology Co., Ltd.
Due to the deterioration of the business environment, business conditions and financial conditions of the invested enterprise Suzhou
Industrial Park Ruican Investment Enterprise (limited partnership), the Company takes zero yuan as a reasonable estimate of the fair
value for measurement.
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XII. Related Parties and Related Transactions
1. Parent company of the Company
Shareholding ratio Voting right ratio
Parent company of the parent of the parent
Registration place Business nature Registered capital
name company in the company in the
Company Company
Hangzhou
Investment and
ROBAM Hangzhou,
industrial RMB 60 million 49.68% 49.68%
Industrial Group Zhejiang
management
Co., Ltd.
2. Situation of other related parties
Name of other related parties Relationship of other related parties with the Company
Hangzhou Amblem Kitchenware Co., Ltd. Controlled by the same final controller
Hangzhou Yuhang ROBAM Gas Station Co., Ltd. Controlled by the same final controller
Hangzhou Nbond Nonwoven Co., Ltd. Controlled by the same final controller
Hangzhou Yuhang Matt Spray Painting Factory Other related parties
Garden Hotel Hangzhou Other related parties
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Controlled by the same final controller
Shaoxing Kinde Electric Appliance Co., Ltd. Other related parties
Hangzhou Guoguang Touring Commodity Co., Ltd. Controlled by the same final controller
Hangzhou seazons Technology Co., Ltd. Controlled by the same final controller
3. Related transaction
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: yuan
Related
Amount incurred Whether the transaction Amount incurred in
Related party transaction
in current period quota is exceeded previous period
content
Hangzhou Yuhang Matt Spray Painting
Labor receiving 9,560,985.98 No 11,303,674.25
Factory
Hangzhou seazons Technology Co.,
Product purchase 6,339,452.12 No
Ltd.
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Hangzhou Amblem Kitchenware Co.,
Product purchase 1,846,329.38 No 1,814,159.29
Ltd.
Hangzhou Yuhang ROBAM Gas
Product purchase 854,444.59 No 678,662.70
Station Co., Ltd.
Garden Hotel Hangzhou Labor receiving 201,474.34 No
Hangzhou Guoguang Touring
Product purchase 94,897.35 No 857,890.96
Commodity Co., Ltd.
Hangzhou Nbond Nonwoven Co., Ltd. Product purchase 86,436.20 No 67,343.18
Hangzhou Bonyee Daily Necessity
Product purchase 424.78 No 2,019,569.34
Technology Co., Ltd.
Selling commodities/offering labor
Unit: yuan
Related transaction Amount incurred in Amount incurred in
Related party
content current period previous period
Hangzhou Amblem Kitchenware Co., Ltd. Selling goods 11,650,995.14 6,079,306.17
Shaoxing Kinde Electric Appliance Co., Ltd. Selling goods 1,955,652.51
De Dietrich Trade (Shanghai) Co., Ltd. Selling goods 1,190,969.50
Related transaction of purchases and sales of goods, provision and acceptance of services
(2) Related-party lease
The Company as the lessor:
Unit: yuan
Lease income recognized in Lease income recognized in
Name of lessee Type of leased assets
the current period the previous period
Hangzhou ROBAM
House 28,800.00 28,800.00
Industrial Group Co., Ltd.
The Company as the lessee:
Unit: yuan
Lease fee recognized in the Lease fee recognized in the
Name of lessor Type of leased assets
current period previous period
Hangzhou ROBAM
House 550,024.57 550,024.57
Industrial Group Co., Ltd.
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6. Accounts receivable and payable by related parties
(1) Payables
Unit: yuan
Item name Related party Year-end balance Year-beginning balance
Hangzhou Yuhang Matt Spray Painting
Accounts payable 3,543,430.78 3,182,779.20
Factory
Hangzhou Yuhang ROBAM Gas Station
Accounts payable 1,723,356.74 2,257,834.37
Co., Ltd.
Hangzhou Guoguang Touring Commodity
Accounts payable 23,605.20 22,336.73
Co., Ltd.
Hangzhou Yuhang Matt Spray Painting
Other payables 200,000.00 200,000.00
Factory
Hangzhou Guoguang Touring Commodity
Other payables 2,000.00 2,000.00
Co., Ltd.
XIII. Share-based Payment
□ Applicable √ Not applicable
XIV. Commitme nt and Contingencies
1. Important commitment issues
Important commitments on balance sheet date
Investment commitments to subsidiaries and associated companies
Shengzhou Kinde, a subsidiary of the Company, has committed to invest 35 million yuan in Cooking Future. At present, 17.5 million
yuan has been paid in, accounting for 70% of the equity, and 17.5 million yuan has not been paid.
The Company has committed to invest 4 million yuan in Tingshuo Brand, an associated company of the Company. At present, 2
million yuan has been paid in, accounting for 40% of the equity, and 2 million yuan has not been paid. Except for the above
commitments, the Company has no other major commitments as of the date of presentation of the financial statements.
XV. Contingencies
(1) Important contingencies on balance sheet date
The Company had no significant contingencies to be disclosed as of December 31, 2021.
(2) Explanation even if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
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XVI. Post-balance Sheet Events
1. Stock option incentive plan
On March 31, 2022, the 9th meeting of the Fifth Board of Directors of the Company deliberated and approved the Company's “2022
Stock Option Incentive Plan (Draft)”. The incentive plan mainly takes the operating income from 2022 to 2024 as the performance
evaluation target, and provides stock option incentive to 285 middle management and core technology (business) backbones working
in the Company (including subsidiaries), with an exercise price of 29.27 yuan/share. The above proposals need to be submitted to the
general meeting of shareholders of the Company for deliberation.
2. Dividend distribution
At the Company’s 10th meeting of the Fifth Board of Directors on April 19, 2022, the Profit Distribution Plan for 2021 was approved.
Based on the total share capital of 944,094,916 as of December 31, 2021 (the existing total share capital is 949,024,050 sha res,
excluding 4,929,134 shares repurchased), the Company intends to pay a cash dividend of 5.00 yuan (tax included) per 10 shares to all
shareholders, for a total of 472,047,458.00 yuan. The proposal needs to be reviewed and approved by the general meetin g of
shareholders.
The Company had no other important matters to be disclosed as of December 31, 2021.
XVII. Notes on Main Items of Parent Company's Financial Statement
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category Book
Accruing
Proportio Accruing Book value
Amount Amount proportio value Amount Proportion Amount
n proportion
n
Accounts receivable of
628,127,2 551,636,2 76,490,96 11,250,77 8,407,639.
provision for bad debt by 29.39% 87.82% 1.13% 74.73% 2,843,140.36
48.06 86.07 1.99 9.60 24
single item
Where:
Accounts receivable of
1,509,321 89,120,67 1,420,200, 984,599,1 53,832,39 930,766,768.
provision for bad debt by 70.61% 5.90% 98.87% 5.47%
,539.72 4.12 865.60 59.57 0.64 93
combination
Where:
Combination of related 13,799,39 13,799,39 26,572,54 26,572,541.5
0.64% 2.67%
party 9.00 9.00 1.50 0
Accounts receivable of
1,495,522 89,120,67 1,406,401, 958,026,6 53,832,39 904,194,227.
provision for bad debt by 69.97% 5.96% 96.20% 5.62%
,140.72 4.12 466.60 18.07 0.64 43
expected credit loss
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combination based on
aging features
2,137,448 640,756,9 1,496,691, 995,849,9 62,240,02 933,609,909.
Total 100.00% 29.98% 100.00% 6.25%
,787.78 60.19 827.59 39.17 9.88 29
Provision for bad debt by single item:
Unit: yuan
Ending balance
Name Provision for bad Accruing
Book balance Reasons for provision
debt proportion
Group 1 470,382,848.12 470,382,848.12 100.00 Debt default
Group 2 59,399,471.06 11,879,894.24 20.00 Debt extension
It is not expected to
Group 3 28,751,367.91 20,125,957.56 70.00
recover it all
It is not expected to
Group 4 1,088,119.72 761,683.82 70.00
recover it all
It is not expected to
Group 5 15,877,599.20 11,114,319.42 70.00
recover it all
It is not expected to
Group 6 5,149,548.81 3,604,684.17 70.00
recover it all
It is not expected to
Group 7 6,093,423.82 4,265,396.62 70.00
recover it all
It is not expected to
Group 8 2,341,043.43 1,638,730.40 70.00
recover it all
It is not expected to
Group 9 25,413,389.42 17,789,372.60 70.00
recover it all
It is not expected to
Group 10 11,010,781.52 7,707,547.07 70.00
recover it all
Group 11 1,773,645.05 1,773,645.05 100.00 Debt default
It is not expected to
Summary of other companies 846,010.00 592,207.00 70.00
recover it all
Total 628,127,248.06 551,636,286.07 -- --
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combination base d on
aging features
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 1,282,814,618.48 64,140,730.92 5.00%
1~2 years 194,591,192.05 19,459,119.21 10.00%
2~3 years 13,593,353.21 2,718,670.64 20.00%
3~4 years 3,164,810.08 1,582,405.04 50.00%
4~5 years 692,092.95 553,674.36 80.00%
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More than 5 years 666,073.95 666,073.95 100.00%
Total 1,495,522,140.72 89,120,674.12 --
Provision for bad debt by combination: accounts receivable of provision for bad debt by combination of related parties
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Combination of related party 13,799,399.00
Total 13,799,399.00 --
Unit: yuan
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 1,908,295,189.63
Within 1 year (including 1 year) 1,908,295,189.63
1~2 years 208,042,636.08
2~3 years 14,075,028.57
More than 3 years 7,035,933.50
3~4 years 3,850,658.15
4~5 years 716,808.95
More than 5 years 2,468,466.40
Total 2,137,448,787.78
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Canceled
Category Beginning balance Recovered or Ending balance
Provision after Other
reversed
verification
Provision for bad debt
62,240,029.88 578,516,930.31 640,756,960.19
of accounts receivable
Total 62,240,029.88 578,516,930.31 640,756,960.19
(3) Receivables with top 5 ending balances by debtor
Unit: yuan
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Proportion in total ending
Ending balance of accounts Ending balance of bad debt
Unit name balance of accounts
receivable provision
receivable
Unit 1 632,520,806.39 29.59% 38,978,254.25
Unit 2 299,560,496.54 14.01% 299,560,496.54
Unit 3 95,125,955.20 4.45% 95,125,955.20
Unit 4 87,226,120.73 4.08% 4,361,306.04
Unit 5 64,153,667.97 3.00% 3,207,683.40
Total 1,178,587,046.83 55.13% --
2. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Other receivables 66,149,239.78 49,092,820.31
Total 66,149,239.78 49,092,820.31
1) Other receivables classified by nature
Unit: yuan
Nature of payment Ending book balance Beginning book balance
Collection by third party 39,389,486.99 20,064,674.31
Deposit and margin 41,547,121.13 33,786,199.08
Associated contact 4,064,000.00 4,064,000.00
Withheld amount 2,646,050.39 2,256,187.63
Imprest 966,513.08 1,383,261.26
Other 6,021.99 3,199,125.99
Total 88,619,193.58 64,753,448.27
2) Provision for bad debt
Unit: yuan
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss for Expected credit loss for
Provision for bad debt Total
losses over the next the entire duration (no the entire duration (credit
12 months credit impairment) impairment has occurred)
Balance on January 1, 15,660,627.96 15,660,627.96
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2021
Balance on January 1,
—— —— —— ——
2021 in current period
Withdrawn in current
6,809,325.84 6,809,325.84
period
Balance on December
22,469,953.80 22,469,953.80
31, 2021
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 57,509,276.34
Within 1 year (including 1 year) 57,509,276.34
1~2 years 4,670,203.22
2~3 years 3,781,771.82
More than 3 years 22,657,942.20
3~4 years 2,345,413.80
4~5 years 15,570,600.00
More than 5 years 4,741,928.40
Total 88,619,193.58
3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Beginning Canceled
Category Recovered or Ending balance
balance Provision after Other
reversed
verification
Provision for bad
15,660,627.
debt of other 6,809,325.84 22,469,953.80
96
receivables
15,660,627.
Total 6,809,325.84 22,469,953.80
96
4) Other receivables with top 5 ending balances by debtor
Unit: yuan
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Proportion in
Nature of total other ending Ending balance of
Unit name Ending balance Aging
payment balance bad debt provision
receivable
Collection
Unit 1 by third 17,310,849.30 Within 1 year 19.53% 865,542.47
party
Unit
Unit 2 security 14,778,000.00 4~5 years 16.68% 11,822,400.00
deposit
Collection
Unit 3 by third 9,647,377.56 Within 1 year 10.89% 482,368.88
party
Collection
Unit 4 by third 7,533,207.76 Within 1 year 8.50% 376,660.39
party
More than 5
Unit 5 Loan 4,064,000.00 4.59% 4,064,000.00
years
Total -- 53,333,434.62 -- 60.19% 17,610,971.74
3. Long-term equity investment
Unit: yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment
in 257,032,370.17 20,400,000.00 236,632,370.17 246,905,933.73 20,400,000.00 226,505,933.73
subsidiaries
Investment
in
associated
5,405,129.91 5,405,129.91 3,452,769.59 3,452,769.59
enterprises
and joint
enterprises
Total 262,437,500.08 20,400,000.00 242,037,500.08 250,358,703.32 20,400,000.00 229,958,703.32
(1) Investment in subsidiaries
Unit: yuan
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Increase or decrease in current period Balance of
Beginning
Provision Ending balance impairment
Invested unit balance (book Further Capital
for Other (book value) provision at the
value) investment reduction
impairment end of period
Shengzhou Kinde
Intelligent
162,320,000.00 162,320,000.00
Kitchen Electric
Co., Ltd.
Hangzhou Mingqi
51,901,780.81 126,436.44 52,028,217.25
Electric Co., Ltd.
De Dietrich
Household
Appliances
630,900.00 630,900.00 20,400,000.00
Trading
(Shanghai) Co.,
Ltd.
Shanghai
ROBAM Electric
5,838,272.10 5,838,272.10
Appliance Sales
Co., Ltd.
Beijing ROBAM
Electric Appliance 5,814,980.82 5,814,980.82
Sales Co., Ltd.
Hangzhou
ROBAM
Fuchuang
10,000,000.00 10,000,000.00
Investment
Management Co.,
Ltd.
Total 226,505,933.73 10,126,436.44 236,632,370.17 20,400,000.00
(2) Investment in associated enterprises and joint enterprises
Unit: yuan
Increase or decrease in current period Balance
Beginnin Investm Adjustmen Declar Ending of
Capita Chan Provisio
Invested g balance Further ent t of other ed balance impairm
l ges in n for Oth
entity (book investme gains comprehen payme (book ent
reducti other impairm er
value) nt and sive nt of value) provisio
on equity ent
losses income cash n at the
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recogniz divide end of
ed by nds or period
the profits
equity
method
I. Cooperative enterprise
De
Dietrich
Trade 3,452,76 208,930. 3,661,70
(Shangha 9.59 44 0.03
i) Co.,
Ltd.
3,452,76 208,930. 3,661,70
Subtotal
9.59 44 0.03
II. Joint venture
Zhejiang
Tingshuo
Brand
Operatio 2,000,00 -256,57 1,743,42
n 0.00 0.12 9.88
Manage
ment
Co., Ltd.
2,000,00 -256,57 1,743,42
Subtotal
0.00 0.12 9.88
3,452,76 2,000,00 -47,639. 5,405,12
Total
9.59 0.00 68 9.91
4. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 9,034,839,040.01 4,512,516,514.28 7,371,735,814.27 3,327,933,213.49
Other businesses 249,392,105.48 45,025,643.79 158,693,150.69 47,551,519.54
Total 9,284,231,145.49 4,557,542,158.07 7,530,428,964.96 3,375,484,733.03
5. Investment income
Unit: yuan
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Item Amount incurred in current period Amount incurred in previous period
long-term equity investment gains
-47,639.68 -715,569.20
measured by employing the equity method
Investment income from trading financial
86,701,654.28 20,859,653.65
assets during the holding period
Dividend income from other equity
instrument investments in the holding 11,985,836.92
period
Other 22,950,000.00
Total 109,604,014.60 32,129,921.37
XVIII. Further Information
1. Current non-recurring gain and loss statement
√ Applicable □ Not applicable
Unit: yuan
Item Amount Description
Profit and loss on disposal of non-current assets -2,290,187.24
Government subsidies included into the current profits and losses (except those government
subsidies, which are closely related to the normal business of the Company, comply with national
65,893,969.94
policies and regulations and continuously enjoyed in accordance with a certain standard quota or
quantity)
Reversal of impairment provision for receivables subject to separate impairment test 1,034,992.00
Income and expenditure other than those mentioned above -2,306,626.52
Less: Amount affected by income tax 6,738,387.65
Amount of minority shareholders' equity affected 735,018.14
Total 54,858,742.39 --
2. Return on net assets and earnings per share
Earnings Per Share
Weighted average
Reporting profit Diluted EPS
return on net assets Basic EPS (yuan/share)
(yuan/share)
Net profit attributable to common shareholders of
15.78% 1.41 1.41
the Company
Net profit attributable to common shareholders of
15.13% 1.35 1.35
the Company after deduction of non-recurring
197
Leading global sales
for 7 consecutive
Create China’s new kitchen years
ROBAM 2021 Full Annual Report
profits and losses
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
(2) Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
(3) Causes for differences in accounting data under domestic and foreign accounting standards. If the
difference adjustment has been made to the data audited by the overseas audit institution, the name of
the overseas audit institution shall be indicated
4. Other
198
